What is iNAV, and how is it calculated?

We’ve been talking about gold and silver ETFs in the Indian market (especially after that wild January 2026 premium crash), let’s break down iNAV in plain, easy language. “iNAV” think of it like checking the MRP or “fair price” of something before you buy it at a crowded market.

First, Quick Recap: What is iNAV?

• NAV (Net Asset Value) is the true value of one unit of an ETF or mutual fund. It’s calculated only once a day, usually after the market closes (around evening or night).
• iNAV stands for Indicative Net Asset Value (or Intraday NAV). It’s like a “live update” version of NAV that changes throughout the trading day (9 AM to 3:30 PM IST).
• Why do we need it? ETFs trade on the stock exchange like shares, so their price can go up or down based on what buyers and sellers are willing to pay right now. But that trading price might not match the real value of the gold/silver inside the ETF. iNAV shows you the fair, real-time value so you don’t overpay (premium) or undersell (discount).

Also read: https://orangenews9.com/indias-fiscal-reset-budget-2026-27-to-power-the-next-growth-sprint/

In short: Market price = what people are paying now. iNAV = what it should actually be worth based on current gold/silver prices.

On January 22, 2026, the Indian markets witnessed a bloodbath in precious metal ETFs. While the actual price of silver fell by roughly 6% globally, some Indian Silver ETFs crashed by a staggering 24% in a single day. 

How is iNAV Calculated? (Step-by-Step in Simple Terms)

The Asset Management Company (AMC), like Nippon India, HDFC, Aditya Birla, or Tata calculates iNAV using real-time data. It’s updated very frequently — usually every 10-15 seconds during market hours — and published on their websites, NSE/BSE sites, or broker apps like Zerodha/Groww.

Here’s the easy formula behind it (same basic idea for all ETFs, but simpler for precious metal ones):

iNAV per unit = (Total value of the gold/silver held by the ETF right now – any small liabilities or fees) ÷ Total number of ETF units outstanding

Breaking it down:

1. Take the current real-world price of the metal:

   • For gold ETFs → Use the latest domestic price of physical gold (usually from MCX or international spot price adjusted for Indian rupee, purity, etc.).
   • For silver ETFs → Same, but for the silver price.
   • This price updates live because the gold/silver trade is almost non-stop globally.

2. Multiply by how much metal the ETF actually holds:

   • Each ETF unit represents a tiny fixed amount of metal.
     • Example: Nippon India Gold BeES (GOLDBEES) — 1 unit ≈ 0.01 gram of gold (or whatever the exact ratio is; it’s fixed when the ETF is created).
     • Silver ETFs: Usually 1 gram or a fraction per unit.
   • So: Current gold price per gram × grams of gold per ETF unit = value per unit from the metal.

3. Add any cash sitting in the fund (small amount for expenses/operations) and subtract tiny liabilities (like pending fees or borrowing costs).

4. Divide by the total number of units the ETF has issued.

   That’s it! No complicated stock-by-stock stuff like equity ETFs. For pure gold/silver ETFs, it’s basically tracking one thing: the live price of the metal, scaled to how much metal backs each unit.

Also read: https://orangenews9.com/coppers-silent-surge-why-dr-copper-is-quietly-leading-the-next-economic-cycle/

Example (made-up numbers for clarity, based on how it works):

• Suppose silver is trading at ₹90,000 per kg right now (global + rupee conversion).
• One unit of a silver ETF holds 1 gram of silver.
• Value from silver = ₹90 (per unit).
• Add ₹0.50 cash in the fund, subtract ₹0.20 fees → Net ≈ ₹90.30.
• If there are 10 crore units outstanding → iNAV = ₹90.30 (very close to silver price scaled).

In reality, it’s adjusted for purity (99.9% or 99.5%), import duties, GST if applicable, and small tracking errors — but it’s designed to match the metal price very closely.

Who Calculates and Publishes It?

• The AMC (fund house) or sometimes the stock exchange (NSE/BSE) does the calculation.
• SEBI (India’s market regulator) requires it to be updated every 15 seconds and shared publicly for transparency.
• Where to check live:
  • AMC websites.
  • NSE India website (search for the ETF symbol + “iNAV”).
  • Your broker app often shows it.
  • During the January 2026 frenzy, many people ignored iNAV and bought at a 10-12% premium — that’s why losses were huge when the premium vanished.

Before you make your next move in precious metals, remember these points and follow these three  steps:

• iNAV is indicative (a good estimate), not 100% exact like end-of-day NAV, because it uses the “last available” metal price.
• If market price > iNAV by more than 1-2% → ETF is at a premium (overpriced — avoid buying blindly).
• If market price < iNAV → Discount (bargain, but rare in hype times).
• Ditch Market Orders: Never use a “Market Order” for ETFs. Use a “Limit Order” exactly at the iNAV price. If it doesn’t get filled, don’t regret
• For long-term SIPs, Fund of Funds (FoF) versions avoid this issue entirely because they buy at fair NAV, not the exchange price.

Bottom line: Always glance at iNAV before buying any gold/silver ETF — it’s your “MRP” sticker in a volatile bazaar. It prevents paying extra during FOMO moments, like what happened on January 21, 2026. FOMO turns into real loss when you invest emotionally without checking the details. Gold and silver can help protect wealth over time, but only if you buy smart — not because “the whole world is running behind them.” Do your homework, invest steadily, and avoid the trap of chasing rallies blindly. Your money will thank you! (You can reach out to the author at srinivasbg@invictusfinserv.com)