Net Asset Value

Net asset value or NAV refers to the market value of a fund’s assets less its liabilities per unit. The NAV helps an investor determine whether the fund is undervalued or overvalued. It is calculated at the end of every trading day on the basis of the closing market prices of the investment’s portfolio.

Here is the formula through which you can calculate the net asset value: NAV = (Total Asset – Total Liabilities)/ Total Outstanding Shares.