What does Net Asset Value (NAV) mean?
Jainam Broking Limited
Last Update 2 years ago
Net Asset Value is the net value of an investment fund's assets less its liabilities, divided by the number of shares outstanding.
NAV = (Value of Assets-Value of Liabilities)/number of units outstanding.
Mutual funds are frequently associated with NAV, which aids investors in determining if the fund is overvalued or undervalued. The NAV is a crucial factor when discussing open-end funds. NAV indicates the value of the fund to which a shareholder will be entitled upon investment withdrawal. The price per unit for a closed-end fund, a type of mutual fund with a fixed number of units, is set by the market and may be lower or higher than the NAV.