What is Net Asset Value in mutual funds

Net Asset Value is the Net Value of the overall fund's assets minus its liabilities divided by the no of shares outstanding. When an individual starts investing in mutual funds the units are allocated according to the amount they invested. The NAV can be allotted by the performance of the respective fund while closing the market. Mutual funds invest in the securities Market. Basically, the securities market value changes every day. So NAV Value also changes accordingly every day.