Net Asset Value (NAV)

Net Asset Value (NAV) represents the total value of an investment fund’s assets minus its liabilities, divided by the number of shares outstanding. It essentially shows the per-share worth of the fund, similar to how a stock’s price reflects its value. Investors use NAV to gauge the fund’s performance and to buy or sell shares at this value, usually calculated at the end of each trading day. Understanding NAV helps investors assess whether a fund is fairly valued, growing, or declining over time.