Net Asset Value (NAV) is a financial metric used to determine the value of an investment fund, such as a mutual fund or exchange-traded fund (ETF). It is calculated by subtracting the total liabilities of the fund from its total assets and then dividing that figure by the number of outstanding shares. This provides investors with a per-share value, helping them understand how much each share of the fund is worth. NAV is important for investors because it reflects the current market value of the fund's holdings. It is typically calculated at the end of each trading day, allowing investors to make informed decisions about buying or selling shares. Understanding NAV can help investors assess the performance of their investments and compare different funds.