Free Newsletter

Stay updated, sign up for our free newsletter to receive useful tips

Full Name
Email Id

sign up

Net Asset Value (NAV)

As used in relation to mutual funds (collective investment venues in which individuals purchase shares of a fund whose assets are invested by a manager) the term "net asset value" refers to the calculation used to determine the price of a share in the fund that will be offered to prospective investors.

The net asset value of a mutual fund is calculated on a daily basis by taking the overall value of the fund's portfolios (the aggregate of all assets in which the fund is invested) and subtracting the value of the fund's liabilities (its debts or obligations.) The remaining number is then divided by the total number of outstanding shares in the fund to determine the per share price of participation in the fund. Net asset value is calculated daily because the mutual fund's value fluctuates daily according to the performance of the various assets in the fund's portfolio.

More Glossary Terms Explained here


Suggest an Article

Haven´t found the article you are looking for, please suggest your article. We value all your suggestions and comments

submit
Home            Contact Us        Copyrights    Privacy Policy    Disclaimer
©Copyright 2008 ilikeinvesting.com All Rights Reserved. Read legal policy and privacy policy.