For a mutual fund, net asset value (NAV) is calculated on a per share basis and is calculated at close of business each day. It is calculated as the market value of all securities the mutual fund owns, minus its total liabilities, divided by the number of shares the fund has issued. For valuating a corporation, NAV (also called the book value) is calculated as total assets minus total liabilities. However, NAV is primarily used in reference to mutual funds.

Calculating the NAV each day for a given stock investment is a good way to stay abreast of price changes of the mutual fund. However don't use it as an indicator of the performance of the fund, because the NAV will drop automatically every time the mutual fund pays distributions to shareholders even if fund performance is good. When considering net asset value, follow this blueprint.

1. Contract the assistance of a net asset value consultant.

2. Employ the services of a net asset value adviser for professional advice.

3. Get training on investment finances and strategies.

Action Steps
The best contacts and resources to help you get it done

Seek the professional assistance of a net asset value consultant

Do you need help with net asset value? To maintain healthy competition and progress in your investment strategy, work with a well-known and successful trading partner like the ones listed below.

I recommend: Zecco Trading is a great choice as it offers free online trading. TradeKing also offers online trading and does not hit you with any surprise charges later. Financial Consultant Group offers a full range of financial consultancy services, including investment management, which will give you the piece of mind that the dice are being thrown by a professional.

Obtain net asset value advice before investing

When considering a number of investment options, seek the input of a financial adviser. Proper consideration of all pertinent factors, like the ascertainment of the net asset value of a fund, can be confusing, so insight from a financial adviser can be very helpful.

I recommend: Advisers Financial is a team of certified financial planners ready and able to help you make informed decisions in your investments. Aventine Investment Services offers a full spectrum of financial advisory services and consider net asset value of mutual funds when advising you on investments.

Get net asset value training for you and your staff

Knowledge is power, and if you have a grasp on calculating NAV to support your investment decisions, then you can save on consultant and adviser fees.

I recommend: Boston Institute of Finance offers a certified mutual fund specialist training program. From this training you will certainly become an expert in dealing with considerations when comparing and buying mutual funds. Winning Investing offers training on how to pick the best stocks, exchange traded funds and mutual funds.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  To maximize your return on investment (ROI), whether by mutual funds, stocks, exchange-traded funds (ETFs) or options, you need two things: the knowledge, e.g. net asset value information about prospective investments, and the right trading platform. NAV does not work for all firms. It is used primarily for investment outfits and property. For people-based firms, such as advertising agencies, it is much less relevant, because there is very little invested in equipment or bricks and mortar.