Navigating the NAV
Understanding net asset value can be key to understanding how different fund types work.
Question: When I check the quote pages for all my mutual funds on Morningstar.com the share price is expressed as "NAV." Why is this?
Answer: Every mutual fund quote page on Morningstar.com begins with a quoted net asset value, NAV, for the fund. At the most basic level, net asset value is the current price for one unit of a fund. Net asset value, as the name suggests, reflects the value of the fund's net assets (assets minus liabilities, such as the cost to operate the fund) divided by the number of shares. Next to the fund's closing price (NAV) you'll find the amount and percentage by which its NAV changed relative to the previous trading day.
Adam Zoll does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.