Often abbreviated as NAV, this is the per-share price of a mutual fund based on its total assets minus liabilities, divided by the number of shares outstanding. NAV represents what each share of the fund is theoretically worth. It is calculated at the end of each trading day for mutual funds.
A mutual fund owns stocks and bonds worth $100 million total and has $2 million in expenses and liabilities. It has 10 million shares outstanding. The NAV would be calculated as: $100 million minus $2 million divided by 10 million shares, which equals $9.80 per share.
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