New Delhi, July 28 -- For many first-time investors, understanding the terminology used in a mutual fund can seem challenging. Terms such as what is NAV, IDCW, NFO meaning, and expense ratio are commonly found in scheme documents and fund factsheets. While they may appear technical, these terms describe fundamental aspects of how a mutual fund operates.

Becoming familiar with these concepts can help investors better understand scheme-related information and make more informed investment decisions.

What is NAV?

One of the most commonly searched questions is what is NAV.

NAV, or Net Asset Value, represents the per-unit value of a mutual fund scheme. It is calculated by adding the market value of the scheme's investments and other assets...