BANKING AFFAIRS

Detailed explanation-1: -Also known as book value per share, the net asset value per share (NAVS) is the value per share of a mutual fund, ETF, or closed-end fund. It is declared once a day after the close of the U.S. stock market, though the actual market price per share of a particular fund may be higher than its NAVS.

Detailed explanation-2: -Net asset value (NAV) represents a fund’s per-share intrinsic value. It is similar in some ways to the book value of a company. NAV is calculated by dividing the total value of all the cash and securities in a fund’s portfolio, minus any liabilities, by the number of outstanding shares.

Detailed explanation-3: -Net Asset Value is the net value of an investment fund’s assets less its liabilities, divided by the number of shares outstanding. NAV is commonly used as a per-share value calculated for a mutual fund or ETF.

Detailed explanation-4: -What is the Net Asset Value (NAV) of an ETF? The NAV of an ETF represents the value of all the securities held by the ETF-such as shares or bonds and cash minus any liabilities such as Total Expense Ratio (TER), and divided by the number of shares outstanding. NAV is most often expressed as the value per share.

Detailed explanation-5: -For example, if a mutual fund were to pay a distribution of $1.00 per share and the fund’s net asset value (NAV) was $10.00 per share prior to the distribution, on the ex-dividend date the NAV would be reduced by $1.00 per share.