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Net Asset Value (NAV) - Definition
Below, you'll find a definition of this investing term...

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.

 

Related Sections on Our Website

Investing - Learn more about investing basics and strategies.

Mutual Funds - Learn about investing in mutual funds.

 

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