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Net Asset Value: The value of a share in a mutual fund, which is calculated by subtracting the fund's liabilities from its total assets and dividing the result by the number of outstanding shares. It tells you how much each share is worth.
Net asset value (NAV) is the market value of a share in a mutual fund. It is calculated by subtracting any liabilities of the fund from its total assets and dividing the difference by the number of outstanding fund shares. NAV is also known as asset value.
These examples illustrate how mutual funds can have different investment strategies and goals. For example, bond funds invest in bonds, income funds focus on generating income, index funds track a specific market index, money-market funds invest in low-risk securities, and no-load funds do not charge sales commissions. The NAV of each mutual fund reflects the value of its underlying assets and liabilities.