Net Asset Value (NAV)

What is Net Asset Value (NAV)?

Net Asset Value, commonly known as NAV, is a key concept used by investors and fund managers to evaluate the performance of mutual funds or ETFs. It takes into account the market value of all assets held in an investment portfolio, such as stocks and bonds, less any liabilities. The amount is typically expressed per share and serves as a gauge for the current market value of the collective investments under management.

Net Asset Value Calculation

To calculate the net asset value, start by determining the total market value of all of its assets, then subtracting all its liabilities from that number and divide the result by total number of outstanding shares

Net Asset Value Formula

NAV= (Total asset value - Total Liability value)/Total outstanding shares

Watch - What is NAV?