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Personal finance

NAV (Net Asset Value)

The value of a single unit of an investment fund, calculated by dividing the fund's total assets by the number of units outstanding.

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The NAV (Net Asset Value) is the price of a single unit of an investment fund at a given moment.

How it's calculated

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NAV = (Total value of the fund's assets − Liabilities) / Number of units outstanding

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Unlike a share, whose price fluctuates continuously during the trading session, the NAV of most funds is calculated once a day, at market close, based on the value of all the assets in its portfolio.

Why it matters when investing or redeeming

When you subscribe to or redeem units of a fund, the price applied is the NAV for that day (or the next valuation cutoff), not the one you saw when placing the order — that's why funds aren't bought "instantly" the way a listed stock is.

NAV in crypto too

The concept is also used for funds or vehicles that invest in cryptocurrencies: the fund's net asset value is calculated by dividing the market value of its assets by the units issued, just like in a traditional fund.