Sources: IRS, SEC, Federal Reserve, U.S. Bureau of Labor Statistics & U.S. Census Bureau. See our editorial standards.
The per-share value of a mutual fund, calculated once daily from the total value of its holdings.
Definition: The per-share value of a mutual fund, calculated once daily from the total value of its holdings.
Net asset value is the price at which mutual fund shares are bought and sold. It is computed at the end of each trading day by dividing the fund’s total assets minus liabilities by the number of shares outstanding. Unlike ETFs, which trade continuously, mutual fund orders all fill at that day’s NAV.
NAV = (total assets − total liabilities) ÷ shares outstanding.
A fund holding $500 million in assets with 25 million shares outstanding has a NAV of $20 per share. Every buy or sell that day executes at $20 regardless of the time you place it.
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