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HOSTING A TOTAL OF 318 FORMULAS WITH CALCULATORS

Net Asset Value

The net asset value formula is used to calculate a mutual fund's value per share. A mutual fund is a pool of investments that are divided into shares to be purchased by investors. Each share contains a weighted portion of each investment in the collective pool. The premise of grouping in this manner is to minimize risk by diversifying.

It is important to note that net asset value does not look at future dividends and growth as do other stock and bond valuation methods. The formula for net asset value only looks at the fund's per share value based on its net assets.

a-l o

Here,a=fund assets,l=fund liabilities,o=outstanding shares.

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