NAV Full Form - What does NAV stand for?
NAV stands for
Net Asset Value
Net Asset Value (NAV) is the per-unit market value of a mutual fund scheme, calculated by taking the total value of the fund's assets, subtracting liabilities such as fees and expenses, and dividing by the units outstanding. It is declared once every working day after the market closes, because the underlying portfolio of shares and bonds must be valued at that day's closing prices. The NAV is the price at which an investor buys units on a fresh purchase and receives money on a redemption; it is not a guarantee of future returns. A rising NAV shows that the portfolio has gained value, while a falling NAV reflects markdowns in the holdings. When a new subscription is accepted, units are allotted using the NAV of the day the funds clear, and for liquid funds a cut-off time decides which day's NAV applies. Because mutual funds do not trade at a discount like listed shares, comparing schemes on NAV alone is meaningless; investors should compare returns, expense ratios, portfolio composition and risk over the same period instead.
What does NAV stand for?
NAV is an abbreviation of Net Asset Value. Each letter in NAV maps to a word in the phrase:
| Letter | Word |
|---|---|
| N | Net |
| A | Asset |
| V | Value |
Where is NAV used?
Investment abbreviations show up in contract notes, portfolio statements and market reports. Knowing what each term stands for makes it easier to track returns and risk.
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Frequently Asked Questions
What does NAV stand for?+
NAV stands for Net Asset Value.
What is NAV?+
Net Asset Value (NAV) is the per-unit market value of a mutual fund scheme, calculated by taking the total value of the fund's assets, subtracting liabilities such as fees and expenses, and dividing by the units outstanding. It is declared once every working day after the market closes, because the underlying portfolio of shares and bonds must be valued at that day's closing prices. The NAV is the price at which an investor buys units on a fresh purchase and receives money on a redemption; it is not a guarantee of future returns. A rising NAV shows that the portfolio has gained value, while a falling NAV reflects markdowns in the holdings. When a new subscription is accepted, units are allotted using the NAV of the day the funds clear, and for liquid funds a cut-off time decides which day's NAV applies. Because mutual funds do not trade at a discount like listed shares, comparing schemes on NAV alone is meaningless; investors should compare returns, expense ratios, portfolio composition and risk over the same period instead.
What is NAV used for?+
NAV (Net Asset Value) belongs to the Investments & Markets category. Investment abbreviations show up in contract notes, portfolio statements and market reports. Knowing what each term stands for makes it easier to track returns and risk.
Which category does NAV belong to?+
NAV is filed under Investments & Markets, one of the 10 categories in our directory of 1538 full forms.