A NAV computation is undertaken once at the end of each trading day based on the closingmarket pricesof the portfolio's securities. The formula for a mutual fund's NAV calculation is straightforward: NAV = (Assets - Liabilities) / Total number of outstanding shares For example, let's say a...
The net asset value (NAV) return is the change in the value of a fund's assets over a period. A mutual or exchange-traded fund's (ETF) NAV return can differ from total or market returns because funds may trade at a premium or discount to their NAV. Funds trading above their NAV ar...
NAV Per Share (NAVPS) measures the total value of a mutual fund, ETF, or REIT, expressed on a per-share basis.
It’s better to look at the fund’s total annual return over time to understand its overall performance more fully. This information can be found on the mutual fund’s website or in its prospectus. Bottom line NAV is a fairly simple calculation that you will run into often when investing...
Let's look at a calculation for the per-share NAV of a mutual fund. Assume that the fund has $100 million worth of investments in different securities (a figure calculated from the day's closing prices for each security). It also has $7 million of cash and cash equivalents on hand, ...