What is an example of a net asset value?

As an example, say a fund reports a NAV of $10 million and one million shares outstanding. The NAVPS would be $10, so an investor purchasing $1 million worth of shares would own 100,000 shares. The investment will subsequently increase the net asset value of the fund by $1 million for a total NAV of $11 million.

What is net asset value (NAV)?

Net asset value (NAV) is the value of an investment fund that is determined by subtracting its liabilities from its assets. The fund's per-share NAV is then obtained by dividing NAV by the number of shares outstanding.

How is net asset value calculated?

Net asset value is the value of an investment fund determined by subtracting its liabilities from its assets. Per-share NAV is calculated by dividing NAV by the number of shares outstanding. Funds can be open or closed and the pricing of each share is based on NAV.