Net Asset Value (NAV) is the per-share price of a mutual fund or exchange-traded fund (ETF). It represents the value you would receive for one share if the fund sold all its assets and paid off all its liabilities.
How NAV is calculated
NAV is calculated daily using this simple formula:
- Subtract the fund's liabilities from its total assets
- Divide the result by the number of outstanding shares
What NAV means for you
NAV is the price at which you buy and sell units of mutual funds or ETFs. When you invest in a mutual fund, you purchase units at the current NAV price, and when you redeem your investment, you receive the NAV price per unit. To learn more about NAV, check out Concept of fund & NAV.