NAVpohjainen

NAVpohjainen is a Finnish term that translates to "NAV-based" or "based on NAV". NAV typically refers to Net Asset Value, a measure of a fund's total assets minus its total liabilities. Therefore, NAVpohjainen describes a method, calculation, or approach that is determined by or relies on the Net Asset Value of an entity, most commonly an investment fund.

In the context of investment funds, NAVpohjainen pricing or valuation means that the price of a fund's shares or units is directly calculated from its Net Asset Value per share. This is a standard practice for open-ended mutual funds, where the value fluctuates daily based on the market performance of the underlying assets. Investors buy and sell shares at the NAV calculated at the end of the trading day.

The term can also be applied to performance fees or management strategies that are linked to changes in NAV. For example, a performance fee might be calculated as a percentage of the increase in the fund's NAV over a certain period, above a benchmark. Similarly, an investment strategy might aim to achieve a specific return relative to the fund's NAV. Understanding what is NAVpohjainen is crucial for investors to interpret fund performance, pricing, and fee structures accurately.