# MF Myth Mondays - #4

**URL:** <https://tradebetter.5paisa.com/t/mf-myth-mondays-4/920>\
**Category:** Mutual Funds 💰\
**Created:** [June 22, 2026, 11:07am UTC](https://tradebetter.5paisa.com/t/mf-myth-mondays-4/920 "2026-06-22T11:07:03Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![Purvi.Agrawal](https://dub1.discourse-cdn.com/flex018/user_avatar/tradebetter.5paisa.com/purvi.agrawal/32/57_2.png) [@Purvi.Agrawal](https://tradebetter.5paisa.com/u/Purvi.Agrawal)\
**Post date:** [June 22, 2026, 11:07am UTC](https://tradebetter.5paisa.com/t/mf-myth-mondays-4/920/1 "2026-06-22T11:07:03Z")

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**THIS WEEK’S MYTH:**  **“ A fund with a higher NAV is more expensive — I should pick the one with a lower NAV.”**

This myth leads investors to pick weaker funds just because the number looks smaller. NAV is not a price tag.

**THE TRUTH:** \*\* **NAV is just the current value of the fund’s units — not a measure of how cheap or expensive it is.** \*\*

| ❌ What people think | ✅ What actually works |
| --- | --- |
| Markets are down, I should pause my SIP and wait for them to recover. | Keep the SIP running. Dips = more units = bigger gains when markets recover. |

 ![image](https://europe1.discourse-cdn.com/flex018/uploads/community_5paisa/original/2X/f/f096ff17b50600e0c90cbca4b9117d64d836c17a.png)

Rahul picked a new fund with NAV ₹12 over a seasoned fund with NAV ₹450 — thinking he was getting a “better deal.” Priya went with the fund that had a 15-year track record of consistent 14% CAGR. Five years later, Priya’s “expensive” fund had massively outperformed. Rahul learned the hard way — NAV is not a price tag.

**Have you ever chosen a fund based on its NAV?**

- Yes, and I regret it 😬
- Yes, worked out fine
- Never — I look at returns
- Didn’t know this! 🤯

Previously Busted: [MF Myth Mondays - #3](https://tradebetter.5paisa.com/t/mf-myth-mondays-3/909)

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**Author:** ![Blanka\_Live](https://dub1.discourse-cdn.com/flex018/user_avatar/tradebetter.5paisa.com/blanka_live/32/1436_2.png) [@Blanka\_Live](https://tradebetter.5paisa.com/u/Blanka_Live)\
**Post date:** [August 26, 2026, 9:47pm UTC](https://tradebetter.5paisa.com/t/mf-myth-mondays-4/920/2 "2026-08-26T21:47:55Z")

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Is judging Mutual Funds by CAGR is the best way despite there high expense ratio and fund type, or a lower performing fund may give better returns in future.