Net Fund Assets

Net Fund Assets

The net fund assets of an investment fund serve as a proxy for the intrinsic value of its stock. In many ways, it is similar to a business’s financial worth. The NFT is calculated by dividing the total market value of all the cash and properties in a fund, minus any liabilities, by the total number of active shares. 

What are net fund assets? 

The prevailing price per unit for a specific mutual fund’s stock is represented by its net worth. It is computed by dividing the number of shareholders by the sum of all assets after all obligations are subtracted. To calculate the selling price for each fund unit, add up the overall worth of a collection of funds and split that by the entire amount of fund units. 

Mutual fund unit costs typically start at a minimum and rise as the value of the assets covered by the funds rises. According to this concept, an exchange-traded fund’s Net Fund Assets/Net Added Value, or NAV, increases as its popularity increases. 

With regard to open-ended investments, the most typical measurement is the total value of a property. With such investments, investors cannot exchange shares or ownership. So, by establishing a benchmark value, the NAV aids in the decision of which asset to remove from or keep in a group of investments. 

Understanding net fund assets 

Each business day’s ending market values for the assets in the holdings are used for the NAV.  

So, investors should pay attention to the overall value since this is where the cost per share of an investment may be found. The cost per unit, the component of calculation where NAV is typically expressed, is obtained by dividing the overall value of an investment by the entire number of existing units. As a result, a mutual fund’s value changes at an identical moment in the NAVPS. 

The formula for net fund assets 

The process for determining the amount that is net is rather simple. Applying the formula, one may accomplish it with ease: 

Total outstanding shares / (Total Asset – Total Liabilities) = An Asset’s Net Value. 

To obtain a precise net worth of resources, it is essential to enter the proper items that qualify underneath the two categories of assets and liabilities. 

Importance of net fund assets 

Net asset value is significant since it aids in determining the value of investors, cash, and other institutions. It helps in developing sound decision-making processes and advising customers about where to put the funds they have.  

This is due to the fact that net asset value takes into account potentially prospective liabilities as well as assets, both important indicators of the financial condition of a corporation. Consultants can offer their customers advice on which investments to make and when is best for doing so by analysing both mutually beneficial and fund exchanges. 

Investing in shares, bonds, and other specialised assets is what a mutual fund attempts to do. Mutual funds are managed by experienced businesses. A fund of investments that operates on a securities exchange is known as an electronically-traded fund, or ETF. 

Example of net fund assets 

Consider an investment vehicle with US$50 million in overall funds — US$45 million in stocks and US$5 million in cash. Assets for the trust total US$10 million. So, the account would then be worth US$40 million in aggregate. 

The price-per-share would correspond to US$40 million divided by US$4 million, or US$10 for each share if the investment vehicle had US$4 million in shares. 

Frequently Asked Questions

NAV, or an investment fund’s net asset value, refers to the cost of every share of a vehicle. In this manner, NAV acts as the foundation for investing in mutual funds.   

Mutual funds hold a variety of equities and securities, and the worth of the assets owned by the strategy can fluctuate daily. Due this, the daily variations in mutual fund NAV are similar to those in the prices of shares. Equities and mutual fund NAV vary significantly in one important way, though. 

The NAV of an exchange-traded fund is determined at the conclusion of every day when the stock markets have opened. It only shifts once per day. However, the prices of shares of stock fluctuate in real time whenever shares are bought and sold.

The Net Asset Value Per Share (NAVPS), which measures the market value for the shares of a bond or an exchange-traded cover, is a measure used to evaluate the profitability of a real estate investment trust, or REIT. The total assets of the mutual fund are divided by the number of outstanding shares to produce the NAVPS. 

It is an indicator used to gauge how well businesses operate, particularly real estate and investment firms. In order to get the value of net assets for each share, one must divide gross assets, ie the entire assets on the financial statements less the total amount of liabilities by the overall amount of shares of stock outstanding, minus the shares kept in reserve. 

Asset worth less liability equals the business’s net assets. (Total Fixed Assets – Total Current Assets) – (Total Current Liabilities – Total Long-Term Liabilities) is the formula used to determine it. 

An individual or organisation’s entire assets are all of their possessions combined. 

(Total Fixed Assets + Total Current Assets) is how it is computed. 

Assets are things with monetary worth that someone else uses continuously to reap benefits. These belongings are often listed in the books of accounts and can be seen on a company’s balance sheet if the proprietor is a business. 

When calculating net worth, debts are taken into account but not when calculating overall assets. 

The stock market value of each share of a specific mutual fund is represented by its net asset value. It is computed by dividing the value of all assets by the number of shares after taking off the debts. 

The total worth of the property of a business after the worth of its obligations has been subtracted is referred to as net assets. Other names for net assets include the book value and equity of shareholders. 

The approach is also referred to as the asset’s support technique, separation value technique, intrinsic technique, evaluation of capital basis, or financial statement method. 

    Read the Latest Market Journal

    Weekly Updates 26/2/24 – 1/3/24

    Published on Feb 28, 2024 47 

    This weekly update is designed to help you stay informed and relate economic and company...

    All-in-One Guide to Investing in China via ETFs

    Published on Feb 27, 2024 233 

    Start trading on POEMS! Open a free account here! Why China? In the vast landscape...

    Navigating the Post-Inflation Landscape in 2024: Top 10 US Markets Key Events to Look out for

    Published on Feb 23, 2024 281 

    Start trading on POEMS! Open a free account here! In 2023, the United States experienced...

    From Boom to Bust: Lessons from the Barings Bank Collapse

    Published on Feb 23, 2024 60 

    Barings Bank was one of the oldest merchant banks in England with a long history...

    Decoding FX CFD 2.0

    Published on Feb 20, 2024 66 

    This article is aimed at availing information and knowledge essential to intermediate forex traders. It...

    Weekly Updates 19/2/24 – 23/2/24

    Published on Feb 19, 2024 89 

    This weekly update is designed to help you stay informed and relate economic and company...

    Unlock Prosperity with 5 Sure-Fire Financial Instruments!

    Published on Feb 14, 2024 197 

    In Singapore, the concept of guaranteed returns may evoke the spirit of prosperity, reminiscent perhaps...

    Weekly Updates 12/2/24 –16/2/24

    Published on Feb 13, 2024 70 

    This weekly update is designed to help you stay informed and relate economic and company...

    Contact us to Open an Account

    Need Assistance? Share your Details and we’ll get back to you


    This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

    An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

    Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

    Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

    The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <> for more information in relation to the dividend distributions.  

    The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

    The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

    This advertisement has not been reviewed by the Monetary Authority of Singapore.  


    Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
    250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
    Tel: (65) 6230 8133 Fax: (65) 65383066