NAV (Net Asset Value)
The per-unit market value of a mutual fund, struck once per business day after markets close.
NAV is the fund’s total assets minus its liabilities, divided by the number of outstanding units. Canadian mutual funds price once a day, usually at 4 p.m. Eastern when the TSX closes. Orders placed before the cut-off transact at that day’s NAV; orders after the cut-off get the next day’s. A high NAV is not ‘expensive’ and a low NAV is not ‘cheap’, it just reflects how long the fund has been running. ETFs differ because they trade intra-day at market prices that can stray slightly from NAV.
Inside Finlo
A 60-second lesson that puts this term in context, alongside the others, lives inside the Finlo app.