What is Nav in ULIP and How is it Calculated?

What Is NAV in ULIP?

How to Calculate NAV of ULIP?

Example Showing the Calculation of NAV in ULIP

Let’s assume, there is an insurance company ABC that offers ULIP schemes to investors. Investor X and Investor Y have purchased a ULIP plan from this insurance provider. Here Investor X has paid ₹40,000, and Investor Y has paid ₹30,000 into the ULIP plan. 

This ABC company will deduct its share from an investor's investments as a charge for managing their funds on their behalf. Now, let us say that the hypothetical amount after deduction is ₹39,600 for Investor X’s investment and ₹29,500 for Investor Y’s investment. 

Hence, the total sum that this fund house can invest will be ₹69,100. People also call this amount Net Investment Value.

Furthermore, let us assume that the price of each unit of these funds is ₹10. So now Investor X will hold 3960 units, that is ₹39,600/₹10, and Investor Y will hold 2950, which is ₹29,500/₹10. Also, the total number of fund units present in this ULIP is 6910 (₹69,100/₹10).

On the next day after investment, the NAV of this ULIP fund will be the total amount invested divided by the total number of fund units, that is, ₹69,100/₹6,910. Hence, on the first day of investment, the NAV of this fund will be ₹10.


Total Amount Invested

Number Units







However, if the fund makes a profit and its total assets become ₹1 lakh, its new NAV will be ₹1,00,000/6,910, i.e., ₹14.47. So now Investor X's profit will be ₹57,301 (3960 x ₹14.47), and Investor Y's profit will be ₹42,686.5 (2950 x ₹14.47).


Profits After Increase of ₹14.47





Is It Important to Check NAV When Investing in a ULIP?

Does the NAV affect a ULIP Returns?

FAQs about NAV in ULIP

When can investors calculate NAV?

Investors can calculate any mutual fund or ULIP NAV when trading at the stock market closes for a particular day. Investors cannot calculate the NAV of a mutual fund or ULIP during stock market hours. This is because the prices of numerous underlying securities keep changing during stock market hours.

Why does the NAV change regularly?

The NAV of an ULIP keeps changing every time due to the continuous fluctuation of stocks and other securities held in the fund. This is why NAV indicates the performance of the fund.

How many times can I see the changes in NAV in a fund in ULIP?

Generally, the fund houses update their NAVs once in a day. As a result, you can see the change in NAV only once in a day. However, it may vary across fund houses.

How can I calculate my total fund value using NAV?

To calculate the total fund value, you need to multiply NAV with the total number of fund units available in your portfolio. In other words, Fund Value =  NAV x total number of units.