NAV, or Net Asset Value, is the value per share of a mutual fund at any given day or time. It is calculated by taking the total value of all the assets in a mutual fund’s portfolio, subtracting all liabilities, and then dividing the result by the total number of shares outstanding.
For easy reference, here’s the formula:
NAV = (Total Assets - Total Liabilities) ÷ Number of Outstanding Shares
NAV calculation is impossible during market hours as the price of the underlying holdings change every minute, so mutual funds trade only once per day, after the markets close at 4 pm ET.
This means that any customer will receive the close of market price on the day they purchase or sell shares of a mutual fund, and that you will therefore not necessarily know the exact NAV when you buy or sell shares.
Please note: The price displayed on our site reflects the previous day's closing price. Morningstar, Yahoo Finance, or Google Finance are great resources for finding the previous day’s closing price.
For further reading: Morningstar NAV Explanation
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