Definition of net asset value NAV

The net asset value is assets less liabilities. In relation to mutual funds, the net asset value or NAV is the market value of a fund share. This is normally given as the bid price, which is the price at which investors in the fund can redeem their shares. The NAV is calculated by subtracting any liabilities the fund might have from its total assets (whose value is usually updated daily after the close of trade), then dividing by the number of outstanding shares so that the NAV is expressed on a per share basis. When the term net asset value is used in relation to the valuation of a listed company, NAV is the book value of the company's assets divided by the number of outstanding shares.

The net asset value of many funds can be seen by searching on the funds data section of the FT website.

Net asset value of an Aviva bond fund

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