New Delhi, June 24 -- A mutual fund's NAV is one of the first numbers investors notice when evaluating a scheme.

For some, a lower NAV signals a buying opportunity. Others prefer funds with higher NAVs, believing they reflect stronger performance. Many investors use the metric to compare schemes before making an investment decision.

But should they?

The answer isn't as straightforward as it may seem. While NAV is central to how mutual funds are priced and transacted, experts say investors often misunderstand what the number actually represents and what it can and cannot tell them about a fund.

According to experts, the short answer is no.

A mutual fund's Net Asset Value (NAV) is simply the per-unit value of its underlying assets afte...