Plain-English definitions, reviewed by an independent investor

NAV (Net Asset Value)

NAV is a fund’s per-share value: total assets minus liabilities divided by shares.

NAV is a fund’s per-share value: total assets minus liabilities divided by shares.

NAV = (Assets − Liabilities) ÷ Shares

Why it matters

It is the fair price of a fund’s holdings, the backbone of fund pricing.

Common confusion

ETFs trade near NAV; closed-end funds can wander far from it.

Definitions reviewed by the Investing Glossary editorial team.

Frequently Asked Questions

NAV vs price?

NAV is the value; the market price can sit above or below it.

When is NAV set?

Funds price NAV once daily after the market closes.

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