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StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
The per-share value of a fund, calculated by dividing total assets minus liabilities by the number of shares outstanding.
Why It Matters
NAV tells you what a fund share is actually worth based on its underlying holdings. For mutual funds, you always buy and sell at NAV (calculated once daily after market close). ETFs trade on exchanges at market prices that can differ slightly from NAV — a premium (above NAV) or discount (below NAV). Comparing price to NAV helps you avoid overpaying.
Key Points
- Calculate it: (Total Fund Assets - Liabilities) ÷ Number of Shares Outstanding
- Mutual funds are priced at NAV once per day; ETFs trade throughout the day at market prices
- Large, liquid ETFs rarely deviate far from NAV; niche ETFs can trade at meaningful premiums or discounts
Learn More
What Is an ETF?
Get a complete explanation with examples, key takeaways, and a quiz to test your knowledge.
Related Terms
Common Questions
The per-share value of a fund, calculated by dividing total assets minus liabilities by the number of shares outstanding. NAV tells you what a fund share is actually worth based on its underlying holdings. For mutual funds, you always buy and sell at NAV (calculated once daily after market close).
NAV tells you what a fund share is actually worth based on its underlying holdings. For mutual funds, you always buy and sell at NAV (calculated once daily after market close). ETFs trade on exchanges at market prices that can differ slightly from NAV — a premium (above NAV) or discount (below NAV). Comparing price to NAV helps you avoid overpaying.
Calculate it: (Total Fund Assets - Liabilities) ÷ Number of Shares Outstanding
Mutual funds are priced at NAV once per day; ETFs trade throughout the day at market prices
Large, liquid ETFs rarely deviate far from NAV; niche ETFs can trade at meaningful premiums or discounts