nav

NAV is an acronym with multiple meanings, but it is most widely used in finance to denote net asset value. Net asset value represents the per-share value of a fund’s assets minus its liabilities. The standard formula is NAV = (Total assets minus total liabilities) divided by the number of outstanding shares. Assets include securities, cash, and accrued income; liabilities cover expenses, borrowings, and payables. NAV is typically calculated at the end of each trading day, updating to reflect market movements and cash flows.

In investment products, the NAV per share (NAVPS) is used to price shares in mutual funds and exchange-traded funds (ETFs). For mutual funds, the fund’s share price is usually the NAV per share at the fund’s daily close. ETFs trade on exchanges and can diverge from their intraday NAV due to supply and demand, creating a premium or discount to the fund’s underlying value. Investors monitor changes in NAV and related distributions to assess performance and reinvestment impact.

Beyond finance, NAV also appears as an acronym in other contexts. Historically, it has been used as shorthand for Norton AntiVirus in software discussions. In technology and documentation, NAV is commonly used as a short form for navigation or navigational features and interfaces.

Overall, NAV functions as a practical metric for valuing pooled assets, guiding buy, hold, and redeem decisions, while the term’s broader usage appears in various technical and historical contexts.