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NAV
(Net Asset Value)
NAV represents the per-share value of a fund's assets minus liabilities, calculated daily for mutual funds and ETFs. For a $100M fund with 5M shares, NAV = $20/share. This is the price at which shares are bought/sold in open-end funds.
NAV is crucial for REITs (must pay 90% income as dividends to maintain REIT status) and closed-end funds (often trade at NAV discounts/premiums). Active traders exploit NAV-ETF price arbitrage opportunities. In private equity, NAV marks unrealized investment value quarterly. NAV calculation methods vary - hedge funds use audited monthly NAVs while crypto funds struggle with volatile asset pricing. Always verify what's included in NAV (e.g., some exclude illiquid assets).
NAV is crucial for REITs (must pay 90% income as dividends to maintain REIT status) and closed-end funds (often trade at NAV discounts/premiums). Active traders exploit NAV-ETF price arbitrage opportunities. In private equity, NAV marks unrealized investment value quarterly. NAV calculation methods vary - hedge funds use audited monthly NAVs while crypto funds struggle with volatile asset pricing. Always verify what's included in NAV (e.g., some exclude illiquid assets).