Let's consider an example to understand why NAV isn't a crucial factor when investing in mutual funds. Suppose you invest Rs. 15,000 in two different schemes, X and Y. Scheme X has a NAV of Rs. 10 per unit, so you get 1,500 units (15,000/10). Scheme Y has a NAV of Rs. 15 per unit, so you get 1,000 units (15,000/15).

Assuming both schemes perform equally well, with a 10% increase in NAV, the new NAVs become Rs. 11 (Scheme X) and Rs. 16.50 (Scheme Y). Despite the different NAVs, the value of your investment in both schemes is the same, Rs. 16,500.

For Scheme X, the calculation is: 1,500 units x Rs. 11 = Rs. 16,500

For Scheme Y, the calculation is: 1,000 units x Rs. 16.50 = Rs. 16,500

This example illustrates that NAV is not a determining factor in mutual fund investments. What matters is the performance of the scheme, not the NAV. It's essential to focus on the fund's underlying assets, investment objectives, and management team when making investment decisions, rather than comparing NAVs. By doing so, you can make more informed choices and achieve your financial goals.