Net Assets

Net assets, or net asset value (NAV), are the difference between a fund’s assets and its liabilities.

Liabilities include management fees, salary expenses, and other costs associated with managing a mutual fund or unit investment trust. If one fund has a higher NAV than another fund, it doesn’t mean it has better performance – it just has more assets, which isn’t an indicator of performance.

Net asset value is often expressed on a per-share basis. To calculate NAV per share, take the difference between the fund’s assets and its liabilities and divide it by the total shares outstanding.

According to the Securities Exchange Commission (SEC), mutual funds and unit investment trusts must report NAV at least once per business day.