NAV Return
Categories: Mutual Funds, Metrics
See: Net Asset Value.
The NAV number, or price, is usually a reflection of a mutual fund's per share price on any given day. Remember that mutual funds print one price per day; they aren't traded serially throughout the day the way a stock or an ETF is. So a consumer pays $20.32 for a share of a given mutual fund, goes hiking, gets lost, and five years later finds her way back home. She logs onto her Fidelity account and sees that her mutual fund, exactly five years later, is now trading for a NAV of $40.64. It has exactly doubled in five years. Her NAV then, has returned 100% in five years, for a compound rate of some annualized 16+%.
Thank goodness for that big bull market to make investors feel richer.