The National Directory of Certified Public Accountants

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In Reference To A Mutual Fund, What Is The ( NAV ) Net Asset Value ?

NAV is the value of a single share of a fund as reported by the fund through Nasdaq. Shares are sold to the public at NAV plus any sales charge and are redeemed at NAV less any redemption charges. Each fund calculates NAV separately for each class. NAV is calculated by taking the current value of the funds total assets allocated to a specific share and subtracting the liabilities and expenses charged against that class and then dividing that amount by the total number of shares of that class outstanding. The NAV of each fund is generally based on the market value of the securities held in the fund. If market value is not available then the fair value is used. The fair value is determined in good faith by procedures approved by the Boards of Directors or Trustees of the Mutual fund.

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