Net Asset Value (NAV)

Definition: When talking about mutual funds, the net asset value (NAV) is the total value of the fund's holdings per share.  This number is calculated daily after the market's close.  A mutual fund with a NAV of $25.50 means it'd cost $25.50 for one share of that fund.

TeenAnalyst Advice: The Net Asset Value is a lot like a stock price.  It's the price of one share of the mutual fund.  Mutual funds allow you to buy partial shares.  So if you invest $100 in a fund with a NAV of $30, you'd get 3.333 shares.

To calculate how much a mutual fund has gone up in the last year, you divide it's current price by its price last year.

Jonny Boy said:

I find my definition to be a little more thorough:the net asset value is the exact dollar value of one particular mutual fund. The net asset value is achieved by taking the assets of the underlying value of the fund and subtracting all the funds liabilities, then dividing this amount by the number out standing ( shares that have been sold and our in the hands of the shareholders)..Another term for shares outstanding is �outstanding stock� The net asset value is calculated at the end of each business day, usually after the market closes. Or at the end of the work day.