Net Asset Value of Fund

The Net Asset Value (NAV) of a fund is the value of all the assets held by the fund minus any liabilities, divided by the number of outstanding shares. It is essentially the price per share of the fund.

The formula for calculating the NAV of a fund is:

NAV = (Market Value of Assets - Liabilities) / Number of Outstanding Shares

The market value of assets includes all the securities, cash, and other assets held by the fund. Liabilities include any fees, expenses, or other obligations that the fund owes. The number of outstanding shares is the total number of shares that have been issued by the fund and are held by investors.

The NAV of a fund is calculated at the end of each trading day, and it is used as a reference point for buying and selling shares of the fund. If the NAV increases, it means that the value of the assets held by the fund has increased. Conversely, if the NAV decreases, it means that the value of the assets held by the fund has decreased.

Investors should note that the NAV of a fund is not the same as the price at which shares can be bought or sold on an exchange. The price of shares may be higher or lower than the NAV, depending on market demand for the fund's shares