[1][2] Shares of such funds registered with the U.S. Securities and Exchange Commission are usually bought and redeemed at their net asset value.
There is no universal method or basis of valuing assets and liabilities for the purposes of calculating the net asset value used throughout the world, and the criteria used for the valuation will depend upon the circumstances, the purposes of the valuation, and any regulatory and/or accounting principles that may apply.
[6] The Securities and Exchange Board of India issued a notice on 17th September 2020 stating that when purchasing mutual fund units before 1:00 PM the NAV from the day of realization (day when investment money reaches the AMC) will be applicable irrespective of the size of investment.
[17][18] In 2003, investors in Lancer Group sued hedge fund administrator Citco for allegedly knowingly disseminating "misleading" Net Asset Value (NAV) statements.
[19][20] Citco ultimately informed investors that it was resigning as administrator to Lancer's funds, but did not provide an explanation.
In contrast to fund valuation, the assets of a company will generally be valued for the purpose of a NAV calculation using the book value, the historical cost, or the amortised cost of the company's assets, or an appropriate combination of the three.
NAV is one of the valuation indices of real estate investment trusts (REITs, pronounced "Reets").
The degree of premium/discount on individual investment unit prices relative to the per-unit NAV serves as the yardstick for assessment.
The NAV index is synonymous to the adjusted price-to-book ratio in which factors such as unrealized losses/gains of owned properties and brand values are reflected.
Typically, these insurance or annuity products issue "units" of ownership to policyholders/annuitants in exchange for their investment—similar to shares of a mutual fund.