What is net asset value?
The net asset value (NAV) is the value of the fund’s underlying securities. It is calculated at the end of the trading day. Any open-end fund buy or sell order received on that day is traded based on the net asset value calculated at the end of the day. A few funds calculate net asset value at more frequent intervals and process trades at those values.
The net asset value, or NAV, is the price at which you buy or sell shares of a mutual fund. To determine the NAV, a mutual fund computes the value of its assets daily by adding up the market value of all the securities it owns, subtracting all liabilities, and then dividing the balance by the number of shares the fund has outstanding. The NAV is the figure you look at in the newspaper to see how much your mutual fund investment rose or fell the previous day.
