What is the difference between NAV and stock price?

Full explanation

NAV (Net Asset Value) = (Total assets of fund - expenses) / number of units. It's calculated daily after market close. NAV doesn't indicate cheapness — a ₹500 NAV fund isn't more expensive than a ₹50 NAV fund. What matters is returns, not NAV level. Stock price, in contrast, is determined by supply and demand in the market in real-time. One stock share gives you fractional ownership of one company. One mutual fund unit gives you fractional ownership of a diversified portfolio of stocks.