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Net asset value (NAV)

Net asset value is the total value of a fund found by subtracting liabilities and expenses from the market value of all its assets; divided by the number of units it gives the unit price. NAV is the valuation basis of mutual funds.
Contents
  1. 1.Key points
  2. 2.Formula / calculation
  3. 3.Interpretation
  4. 4.Pitfalls
  5. 5.Frequently asked questions

Key points

  • Stocks in the portfolio are valued at closing prices, bonds at market prices or yield, deposits and repos with accrued interest; accrued management fees and other liabilities are deducted from the total.
  • The change in NAV is the source of fund return, while the change in unit count shows investor inflows and outflows.
  • valuation of illiquid assets (corporate bonds, real estate) relies on estimates.

Formula / calculation

NAV = Σ (Asset quantity × Market price) + Cash + Receivables − Liabilities − Accrued expenses; Unit price = NAV / Total units. It is computed at the end of every business day and published on TEFAS.

Interpretation

The change in NAV is the source of fund return, while the change in unit count shows investor inflows and outflows. The Yatırımcı.AI live fund estimate approximates NAV intraday by multiplying portfolio weights by intraday prices.

Pitfalls

valuation of illiquid assets (corporate bonds, real estate) relies on estimates. FX conversion timing affects NAV for foreign assets. Because it is computed at day end, the price is unknown for intraday orders.

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Frequently asked questions

Net asset value is the total value of a fund found by subtracting liabilities and expenses from the market value of all its assets; divided by the number of units it gives the unit price.

NAV = Σ (Asset quantity × Market price) + Cash + Receivables − Liabilities − Accrued expenses; Unit price = NAV / Total units. It is computed at the end of every business day and published on TEFAS.

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