NAV (Net Asset Value)

NAV is the fund’s total assets minus its liabilities, divided by the number of outstanding shares. The SEC requires mutual funds to strike NAV by the end of every business day, typically around 4 p.m. Eastern. Any buy or sell order placed before the cutoff transacts at that day’s NAV (this is called forward pricing). A high NAV is not ‘expensive’ and a low NAV is not ‘cheap’; the NAV reflects how long the fund has been running, not its quality.