Quick Definition

Net Asset Value (NAV) is the total value of a fund's assets minus its liabilities, expressed on a per-share basis.

Formula

Examples

• 1A mutual fund with $1 million in assets and $200,000 in liabilities would have an NAV of $800,000. If the fund has 100,000 shares, the NAV per share would be $8.
• 2An ETF tracking the S&P 500 index reports an NAV of $150 per share, indicating the value of the underlying assets each share represents.
• 3A hedge fund calculates its NAV monthly to determine the value of its shares, which helps investors understand their investment's current worth.

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