FinLexicon Term Details

Net Asset Value

NAV helps learners understand fund pricing without confusing it with cheap or expensive.

Category: Mutual Funds Difficulty: Beginner 1 min read Sample Term

Definition

Net Asset Value is the per-unit value of a mutual fund after accounting for its assets and liabilities.

Case Study

A fund with NAV 20 and another with NAV 200 can still be equally suitable depending on holdings and strategy.

Historical Reference

NAV reporting became central as fund houses standardized daily portfolio valuation.

Illustration

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