How is the average buy NAV calculated?

How is the average buy NAV calculated?

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.

How it works

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.

Formula

Average Buy NAV = Total Investment Amount ÷ Total Units Purchased

Example

  • Purchase 1: ₹5,000 invested at NAV ₹10 → 500 units
  • Purchase 2: ₹6,000 invested at NAV ₹12 → 500 units

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.

Why this changes after every purchase

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.

What If?

ScenarioWhat happens
The client sees different NAVs for each purchaseEach 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 investmentThis 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 averageThe 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 derivedThe average buy NAV can be explained using the weighted average formula: total investment amount divided by total units purchased.

Last updated: 09 Apr 2026


    • Related Articles

    • How is the buying average calculated in MTF?

      The buying average for MTF and CNC positions is calculated separately. This helps reflect the actual purchase price under each product type without combining them into a single average. How it works If a client buys the same stock under both CNC and ...

    • Why Does the Buy Average of My IPO Holding Applied via Net Banking ASBA Show As the Closing Price?

      If you applied for an IPO using Net Banking ASBA (through your bank) instead of FYERS, the buy average in your FYERS portfolio may not reflect the actual allotment price. Instead, it will show the closing price on the listing day as a placeholder. ...

    • How is P&L calculated if I hold the same stock in both MTF and CNC?

      If you hold the same stock in both MTF and CNC, the Profit and Loss (P&L) is calculated using the FIFO (First In, First Out) method. This applies irrespective of the product type used to buy the shares. Under FIFO, the shares bought first are treated ...

    • How is the price movement calculated in FYERS?

      On FYERS, price movement stats like Day, Week, Month, and Year help you understand how a stock has performed over various time ranges. These figures are automatically calculated based on the most recent Last Traded Price (LTP) and historical closing ...

    • How can I place a buy or sell order on FYERS?

      Whether you're trading intraday or investing long-term, FYERS makes it easy to place buy or sell orders directly from the watchlist or chart. This guide walks you through the steps and explains the order window so you can trade confidently. Steps to ...