NAV (Net Asset Value)

NAV is the daily price of an investment fund. Index Balance retrieves NAV automatically to calculate the value and return of your portfolio.

Definition

NAV (Net Asset Value) is the price per unit of an investment fund at any given point in time. It is calculated by dividing the total value of the fund's assets by the number of units in circulation. Unlike shares or ETFs that trade in real time, traditional investment funds calculate their NAV once per day, at market close.

When an investor buys or sells fund units, they do so at the NAV of the day of the transaction (or the next day, depending on the fund and cut-off time). For this reason, with investment funds there is no "market price" risk: you always trade at the fund's actual net value.

Index Balance automatically retrieves the historical and current NAV of each fund in your portfolio from Yahoo Finance, enabling precise calculation of your returns and current position. The NAV history is the foundation of all return calculations on the platform.

Practical example

You hold 7.5 units of the iShares Dev World Index fund at a NAV of €142.38. The value of your position in that fund is 7.5 × €142.38 = €1,067.85. If the NAV rises to €148.20 (a return of +4.09%), your position will be worth 7.5 × €148.20 = €1,111.50.