Glossary · Funds & Asset Management
Net Asset Value Per Share
The NAV of a mutual fund divided by the number of outstanding units. This is the base price at which units of an open-end fund are bought and sold on any given day.
01—What is Net Asset Value Per Share?
The definition — and what it means in practice.
Net Asset Value Per Share (NAVPS) is a mutual fund’s net asset value (NAV) divided by the number of outstanding units. It represents the per-unit value of the fund after valuing its holdings and accounting for liabilities. For an open-end fund, NAVPS is the base price used to process unit purchases and redemptions for that dealing day, based on the fund’s valuation rules.
NAVPS matters because it is the reference point for what you actually pay (or receive) when entering or exiting an open-end mutual fund. Your return is driven by changes in NAVPS over time, plus any distributions the fund pays out. When comparing funds, NAVPS by itself is not a “cheap or expensive” signal; it must be viewed alongside the fund’s strategy, risks, and costs.
If a fund’s NAV is Rs 1,000,000 and it has 100,000 units, NAVPS is Rs 10 per unit, the base price used for that day’s buying and selling.
NAVPS = Net Asset Value (NAV) ÷ Outstanding Units
NAV is total assets minus liabilities; units are the number of fund units currently in issue.
- NAVPS is the per-unit value of an open-end mutual fund for a dealing day.
- It is calculated as fund NAV divided by the number of units outstanding.
- Subscriptions and redemptions are processed using NAVPS (subject to any applicable fees).
- A higher NAVPS does not automatically mean a fund is “more expensive” than another.
02—How net asset value per share works on the PSX
The Pakistan-specific rules, conventions, and numbers.
A Pakistan investor may encounter NAVPS when investing in mutual funds rather than buying individual shares on the Pakistan Stock Exchange (PSX). In practice, your transaction in an open-end fund is typically processed at that day’s NAVPS under the fund’s dealing and valuation policies, rather than at a bid/ask price formed on the PSX order book.
NAVPS is conceptually different from a listed share price on the PSX, which can move throughout the trading session and is subject to market mechanics such as daily price limits (circuit breakers) for most equities. By contrast, NAVPS is a calculated per-unit value based on the fund’s underlying assets and liabilities, and is used as the base price for unit buying and selling for the day.
03—Common misconceptions
Where investors most often get this wrong.
A fund with a lower NAVPS is cheaper and therefore better value.
NAVPS is just a per-unit accounting value. “Value” depends on the fund’s underlying holdings, risk, costs, and performance, not whether NAVPS is Rs 10 or Rs 100.
NAVPS behaves like a PSX share price and changes all day.
A share price can change during market hours as orders trade. NAVPS is calculated from the fund’s portfolio valuation and used as a daily dealing price under the fund’s rules.
My return equals only the change in NAVPS.
Your total return can include NAVPS movement plus any distributions paid out. Fees and taxes can also affect what you actually receive.
04—Using net asset value per share on BSL
Where this term shows up across the platform — with live data.
- Read the basics of pooled investing in our glossary.
- Compare listed alternatives such as Exchange Traded Fund when deciding how you want market exposure.
- Track market context alongside fund discussions using the market.
- Explore sector-level context via sectors.
05—Frequently asked questions
What investors ask about net asset value per share on the PSX.
Frequently Asked Questions
NAVPS (Net Asset Value Per Share) is a mutual fund’s net asset value divided by the number of units outstanding. For an open-end fund, it is the base per-unit price used to process buys and redemptions for that dealing day.
NAVPS is calculated as: (total assets minus liabilities) divided by outstanding units. The asset values come from valuing the fund’s holdings under its valuation policies, then subtracting any liabilities before dividing by the number of units in issue.
No. A PSX share price is set by trading in the order book and can move throughout the session. NAVPS is a calculated per-unit value for a mutual fund and is used as the dealing price for that day under the fund’s rules.
Not necessarily. NAVPS mainly reflects the fund’s per-unit value and unit structure. Fund quality is better judged by mandate, portfolio risk, consistency of process, costs, and how returns compare with relevant benchmarks.
Yes. If the value of the fund’s underlying investments falls, or liabilities rise, the fund’s net asset value can decline, which lowers NAVPS. Like most investments, this means returns are not guaranteed.
06—Related terms
Keep building the picture.
The per-unit value of a mutual fund, calculated by dividing the total value of the fund's assets minus liabilities by the number of outstanding units.
A pooled investment vehicle managed by a professional fund manager. Investors buy units in the fund, which then invests in a diversified portfolio of securities. In Pakistan, mutual funds are regulated by the SECP and distributed through asset management companies.
A mutual fund that continuously issues and redeems units based on investor demand, with the number of units varying daily. Most mutual funds in Pakistan operate on an open-end basis.
An investment fund that issues a fixed number of shares at inception. Unlike open-end mutual funds, its shares are not redeemed by the fund on demand but are bought and sold on the stock exchange like ordinary shares.
The total annual cost of operating a mutual fund expressed as a percentage of its average net assets. Includes management fees, administrative costs, and other operating expenses. A lower MER means a greater share of the fund's return flows to investors.
A mutual fund designed to replicate the performance of a specific market index by holding the same securities in the same proportions. Offers broad market exposure at a lower cost than actively managed funds.
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