Definition
Net Asset Value represents the per-share value of a fund's holdings. For mutual funds, shares are bought and sold at NAV. For closed-end funds and ETFs, market price may differ from NAV. NAV is calculated daily by valuing all portfolio securities, adding cash, and subtracting liabilities, then dividing by shares.
Formula
NAV = (Total Assets - Liabilities) / Shares Outstanding
Example
A fund has $100M in assets, $1M in liabilities, and 10M shares. NAV = ($100M - $1M) / 10M = $9.90 per share.
FAQ
What is Net Asset Value (NAV)?
A fund's total assets minus liabilities, divided by shares outstanding.
How do you calculate Net Asset Value (NAV)?
A common formula for Net Asset Value (NAV) is: NAV = (Total Assets - Liabilities) / Shares Outstanding
Why is Net Asset Value (NAV) important?
Net Asset Value (NAV) helps investors evaluate fund types and make more informed decisions.