What is net asset value and net asset value per unit?
The net asset value (NAV) of a mutual fund represents the total value of the securities it holds. This number, divided by the number of issued units, represents the net asset value per unit (NAVPU). For example, assume a mutual fund holds three securities valued as follows: Company A 1000 shares $5/share $5,000 total Company B 500 shares $10/share $5,000 total Company C 100 shares $20/share $2,000 total Total $12,000 The combined value of the securities within the assumed mutual fund or NAV of the fund would be $12,000. If the fund had 1,200 units outstanding, the NAVPU or unit price of the fund would be $10/unit.
