The net asset value (NAV) of a mutual fund represents one unit of its price. NAV is calculated by dividing the entire value of the fund's assets (such as stocks and bonds) by the number of units outstanding. NAV is important because it indicates the price at which investors pay for or redeem mutual fund units. The market value of a fund's holdings is calculated at the end of each trading day. The NAV is used to determine the fund's performance and value over time.
The net asset value (NAV) of a mutual fund represents one unit of its price. NAV is calculated by dividing the entire value of the fund's assets (such as stocks and bonds) by the number of units outstanding. NAV is important because it indicates the price at which investors pay for or redeem mutual fund units. The market value of a fund's holdings is calculated at the end of each trading day. The NAV is used to determine the fund's performance and value over time.
