When a Mutual Fund scheme gets launched the NAV starts from Rs. 10 and increases from there. But while selecting a fund, the decision cannot be solely taken based on NAV. The market movement defines the fund performance and its NAV, hence, if the market goes up the NAV goes up even if it is very high or very low. Same happens if the market goes down. Hence, it is important to give preference to fund’s performance and quality over it’s NAV.