New Delhi, Aug. 26 -- Open a mutual fund page for the first time and the numbers may not be the only confusing part. It is often the vocabulary around them.

NAV, NFO, AUM, TER, IDCW - these abbreviations can make a straightforward investment idea sound more technical than it needs to be. Understanding a handful of common terms can make a scheme page or factsheet much easier to read.

NAV, or Net Asset Value, represents the per-unit value of a mutual fund scheme. It is calculated using the value of the scheme's investments and other assets, after accounting for liabilities and provisions, divided by the number of units outstanding. SEBI's prescribed NAV computation follows this principle.

So, what is NAV useful for? It tells an investor ...