What Is Net Asset Value?

The net asset value (NAV) is the value of one share of a mutual fund. It is the price you receive when you redeem shares.

How they are calculated

Net asset values are calculated every day after the exchanges close. To calculate a fund's NAV, a manager first adds up the closing price of each security held in the portfolio. The manager then subtracts any outstanding liabilities, and then divides the resulting figure by the number of shares owned by the public. The resultant number is the fund's NAV.