Investing · General financial education

NAV and share price

Investor.gov defines a fund's net asset value as its assets minus its liabilities. Per share, that value is divided by the shares outstanding.

In more detail

Assets and liabilities change daily, so NAV changes too. Per-share value is NAV divided by the shares outstanding. The same page says the purchase price of a mutual fund is the approximate per-share NAV plus fees at purchase. The redemption price is the approximate per-share NAV minus fees taken at redemption.

Background

Read next to ETFs, costs and index funds: the calculated value and the price you pay or receive can differ by fees and, for exchange-traded funds, by a premium or discount of the market price to NAV. That gap is not an order from Finmon.

An example

Per-share NAV is 10. A purchase fee is added at buy. The price paid is then the approximate NAV plus that fee. Finmon does not turn that into a purchase.

A common misconception

The price you pay is always exactly the net asset value.

NAV is assets minus liabilities; per share it is divided by the shares outstanding. The purchase price is the approximate per-share NAV plus fees at purchase.

Source: Investor.gov · Net asset value. Last reviewed: 2026-11-09. Editorially reviewed on 2026-11-09. Next review 2027-11-09. Version 0.2.0. Finmon explains. It does not advise. Not investment, tax or legal advice.