NAV is a metric that reflects the value of every unit in a mutual fund and its performance over a period of time. Suppose you invested Rs 1,00,000 in a mutual fund scheme on 10th Jan 2023 and received 2000 units at NAV of Rs 50 that day. The Nav of the fund today is Rs 90. 

If you redeem your units today, your fund value = 2000* 90 = 1,80,000

Your profit = Rs. 1,80,000 - Rs. 1,00,000 = Rs. 80,000

Hence, your investment’s value is reflected in the fund’s NAV. It moves with the value of stocks invested in the portfolio.