What does the term Net Asset Value mean?

Net Asset Value or NAV, is a mutual fund term. The NAV is the price per share at which the mutual fund is valued. It is based on the value of all its holdings divided by the number of mutual fund shares outstanding.

The Net Asset Value of a mutual fund is not fixed; it is calculated based on the net value of the securities or other investments it holds and also for any liabilities the mutual fund owes.

Most mutual funds NAV is set once per day at the close of the trading day. The NAV is the price per share you will pay when buying shares in the mutual fund or the price you will realize when you are selling shares in the mutual fund.

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