Ans: The Net Asset Value (NAV) is the unit price of a mutual fund scheme. Investors often time their investments when the NAV is low so that they can sell them when the NAV has peaked and get high returns. A low NAV is often preferred by investors who hope for long-term gains.  However, one must also keep the fund’s past performance, expense ratio and investment tenure in mind for selecting the best mutual fund for lump sum investment.