Finance Glossary
Net Asset Value (NAV)
What is the net asset value?
The Net Asset Value (NAV) corresponds to the value of a share (in the case of a FCP) or a stock (in the case of SICAV), excluding entry or exit fees, and is obtained by dividing the net assets of the collective investment scheme by the number of shares (for mutual funds) or stocks (for investment companies with variable capital).
The net asset value constantly varies according to the fluctuations in the prices of the securities in which the collective investment scheme is invested. For collective investment schemes invested in bonds or stocks, the stock market price is used as the basis for valuation.
The net asset value of the collective investment scheme serves as the basis for calculating the subscription or redemption price of each share or unit of the scheme. The net asset value of a collective investment scheme is often calculated daily. Given the time required for calculation, the net asset value of the day is generally only available late in the evening or the following day.