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Finance Glossary

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NAV - Net Asset Value


The net asset value (NAV) is the per share market value of a mutual fund, i.e., the price at which a mutual fund closes each day. (See: closed end fund.) The NAV can be calculated with this equation:

(total value of shares and cash in a fund – liabilities) / (number of shares outstanding)

The NAV is important when trying to figure out the price per unit of a fund, which is in turn important when comparing different investments.


A fund has $10 million in liabilities, $50 million in shares and cash, and 4 million shares outstanding. The NAV is $10.

Thanks, math.