Net Asset Value (NAV)
NAV represents the per-share value of a mutual fund or ETF, calculated by dividing the total value of all assets minus liabilities by the number of outstanding shares.
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Definition
NAV represents the per-share value of a mutual fund or ETF, calculated by dividing the total value of all assets minus liabilities by the number of outstanding shares.
Use case
Used in fund management workflows, analysis, and technical interviews.
Judgment check
Useful only when the assumptions and inputs behind the metric are understood.
Deep dive
How to think about Net Asset Value (NAV)
NAV is calculated at the end of each trading day for mutual funds. It reflects the market value of a fund's holdings and is the price at which investors buy and redeem fund shares. For ETFs, NAV serves as a reference — actual trading prices may differ slightly due to supply and demand.
Example: A mutual fund holds $500M in securities and $20M in cash, with $10M in liabilities and 25M shares outstanding. NAV = ($500M + $20M - $10M) / 25M = $20.40 per share.
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Net Asset Value represents the per-share value of a fund's or company's underlying assets. In fund accounting, NAV is calculated after accounting for all investments, cash, liabilities, and accruals.
NAV fluctuations reflect both investment performance and capital activity (calls/distributions).