Mutual funds can issue fractional units, up to 3 decimal places. A fund can collect ₹1,00,000 and issue 1000 units with NAV of 100. Other one can collect the same ₹1,00,000 and issue 10,000 units at NAV of 10. The underlying net value of the fund is same, only the NAV value is different because of different number of units. This is why when somebody tells you that a fund with NAV of 10 is better than a fund with NAV of 300, you should not agree to it. The total fund value depends upon the securities and not the NAV. Better to avoid such advice.