Short answerNAV stands for net asset value, the total value of a fund's assets minus its liabilities, usually expressed per unit. For funds holding real assets it is an estimate, not a traded price.
NAV is the abbreviation for net asset value. It is the value of everything the fund owns, minus what it owes, and it is commonly divided by the number of units to give a value per unit.
How it is used
Subscriptions and redemptions in many funds are based on the NAV at a given date. It is also the figure that most reports use to show how the fund has changed in value.
Why it matters
For funds that hold property or other unlisted assets, the NAV depends on valuations made by experts at intervals. It is therefore an estimate and may differ from the price a buyer would actually pay. It can also lag the market. Treat a steady NAV with care, and check how often and by whom valuations are carried out.
General information. Not investment advice or a suitability assessment.
