The average buy NAV is calculated using the weighted average method. This means the total amount invested across all purchases is divided by the total number of units purchased.
This helps show one consolidated average buy NAV, even if the investments were made at different NAVs through SIPs or lump sum purchases.
When you invest in the same mutual fund multiple times, each purchase may happen at a different NAV. Instead of showing each purchase NAV separately as the overall buy price, the system calculates a single average buy NAV based on the total investment amount and total units.
Average Buy NAV = Total Investment Amount ÷ Total Units Purchased
Total Investment = ₹5,000 + ₹6,000 = ₹11,000
Total Units = 500 + 500 = 1,000 units
Average Buy NAV = ₹11,000 ÷ 1,000 = ₹11
So, even though the purchases happened at two different NAVs, the average buy NAV becomes ₹11.
Whenever a new purchase is made, both the total investment amount and the total units change. Because of this, the average buy NAV is recalculated after every transaction.
| Scenario | What happens |
|---|---|
| The client sees different NAVs for each purchase | Each transaction is executed at the applicable NAV of that day, but the buy average is shown as a single weighted average NAV. |
| The average buy NAV changes after a new investment | This happens because the system recalculates the average using the updated total investment amount and total units. |
| The client expects the latest NAV to become the new buy average | The buy average is not based only on the latest transaction. It is calculated using all purchases in that mutual fund. |
| The client wants to understand how the average was derived | The average buy NAV can be explained using the weighted average formula: total investment amount divided by total units purchased. |
Last updated: 09 Apr 2026