NAV (Net Asset Value)

Net Asset Value (NAV) represents the total value of a fund’s assets minus its liabilities, divided by the number of shares outstanding. It essentially indicates the per-share value of the fund at a specific point in time. For example, if a mutual fund owns investments valued at $100 million and has $10 million in liabilities, with 9 million shares outstanding, the NAV per share would be ($100 million - $10 million) ÷ 9 million = approximately $10 per share. NAV helps investors assess the worth of their investment in the fund and measure its performance.