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TrustFinance Research Team
Oct 09, 2026
4 min read
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NAV is the fund’s net asset value per unit, while an exchange-traded fund can trade at a market price different from NAV. For a mutual-fund order, the applicable valuation and fees depend on the product’s dealing rules.
At fund level, NAV means assets minus liabilities. Per-unit NAV divides that result by the units outstanding. In a hypothetical fund with assets 1,010,000, liabilities 10,000 and 100,000 units, net assets are 1,000,000 and NAV per unit is 10. A small NAV does not mean a fund is cheap in the stock-valuation sense, and a large NAV does not by itself mean it is expensive. Splits, distributions and history can affect the number.
An open-end mutual fund commonly uses the next applicable calculated NAV under its rules rather than a live negotiated exchange price. An ETF traded on an exchange has a market price that can differ from NAV, with spreads and transaction costs also relevant. Check the product structure first. The latest displayed NAV may relate to an earlier valuation and is not necessarily the price for an order you send now.
For a purchase example, assume a total budget of 10,000 and an entry fee explicitly calculated as 1% of that budget. The fee is 100, the amount invested is 9,900 and a final applicable NAV of 10 gives 990 units. This fee convention is invented; real funds may use a different base, add fees outside the budget, waive them or round units differently. For a separate redemption example, 100 units at NAV 10.50 produce gross proceeds 1,050. A hypothetical 1% charge on those proceeds is 10.50, leaving 1,039.50 before any other costs or taxes.
A cutoff governs which orders are accepted for a designated valuation, not a guaranteed instant price or cash arrival. Imagine a stated 14:00 cutoff. A complete funded order recorded at 13:50 may qualify under those terms, while one at 14:10 may move to a later eligible valuation. Check time zone, distributor deadline, holidays, payment confirmation and incomplete-order treatment. Ongoing expenses can already affect NAV; do not subtract them again from a net value. Keep the order acknowledgment and compare it with the final confirmation.
| Step | Hypothetical calculation | Result |
|---|---|---|
| NAV per unit | (1,010,000 − 10,000) ÷ 100,000 | 10 |
| Purchase fee | 1% × 10,000 | 100 |
| Invested amount | 10,000 − 100 | 9,900 |
| Purchased units | 9,900 ÷ 10 | 990 |
| Separate redemption gross | 100 × 10.50 | 1,050 |
| Redemption fee | 1% × 1,050 | 10.50 |
| Redemption net | 1,050 − 10.50 | 1,039.50 |
Use the current official documents for the exact product and keep the document date with your notes. A brochure, review or short summary can help you identify questions, but it cannot settle the meaning of a contractual term. If two documents appear inconsistent, ask the provider which version applies and request a written explanation. Do not send identity documents or account details to an unverified contact.
Not necessarily. It can be an earlier or indicative value. The dealing rules determine the applicable valuation, which may not be known when you submit.
No. Order acceptance, valuation, confirmation and cash settlement are separate steps. Read the stated schedule and possible holiday or suspension conditions.
This article provides general financial education. It does not evaluate your individual circumstances or replace the applicable contract and local rules. The numerical examples are invented to explain a method. The sources below come from the jurisdictions stated in their titles; their specific legal procedures do not automatically apply elsewhere.
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TrustFinance Research Team
Official TrustFinance research and editorial team, sharing insights, analysis, and best practices to help financial companies and traders build transparency, credibility, and growth.
