What is the net asset value of a mutual fund?

The net asset value (NAV) of a mutual fund is defined as the per-share value of the fund's current holdings. It represents the total value of the mutual fund's assets minus its liabilities, divided by the number of outstanding shares. This calculation provides investors with a clear indication of the value of each share in the mutual fund and is crucial for assessing the price at which shares can be bought or sold.

When calculating NAV, the fund considers all the securities it holds, their market prices, and any debts or obligations the fund might have. This value is typically calculated at the end of each trading day, providing a consistent basis for investors to evaluate their investments.

The other options do not accurately describe NAV. For example, measuring a fund's performance over time pertains to metrics like total returns, while total assets under management refers to the overall size of the fund rather than the value per share. Total returns after deducting fees provide insights into profitability but do not define the net asset value itself. Therefore, the correct understanding of NAV focuses explicitly on the per-share value derived from the fund's holdings.