Understanding Net Asset Value (NAV): The Cornerstone of Fund Valuation

Illustration of Net Asset Value calculation formula for investment funds showing assets minus liabilities divided by shares

“Net Asset Value, or NAV, serves as the fundamental measure of a fund’s worth, calculated daily by subtracting total liabilities from total assets and dividing by outstanding shares. It underpins pricing for mutual funds and ETFs at fair value, while for closed-end funds, it highlights potential premiums or discounts in market trading, offering investors critical … Read more