I am trying to understand the concept of NAV in relation to dividend payout. Could someone explain what NAV means in the context of a dividend payout?
5 answers
emma_lewis_pilot
Sun Jan 05 2025
The net asset value (NAV) of a mutual fund is derived through a straightforward calculation.
Stefano
Sun Jan 05 2025
Specifically, the NAV decreases following the distribution of dividends, as the fund's assets are reduced.
Valentina
Sun Jan 05 2025
This calculation involves dividing the total value of the fund's assets by the number of its outstanding shares.
CryptoElite
Sun Jan 05 2025
The result provides a snapshot of the fund's performance and financial health.
Alessandra
Sun Jan 05 2025
When the fund makes dividend payments to its shareholders, it affects the NAV.