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KembaraXtra-Islamic Finance-Islamic Capital Market -NAV vs Share Price
NAV (Net Asset Value)
• Refers to the price per unit of a mutual fund
• Calculated as: (Total assets − Total liabilities) ÷ Total units outstanding
• Represents the true underlying value of the fund per unit
• Calculated once per day, usually at the end of the trading day
• Used for buying and redeeming mutual fund units
• Does not fluctuate during the trading day
• Investors transact directly with the fund manager
• Mutual fund units are not traded on stock exchanges
Share Price
• Refers to the market price of a company’s share
• Determined by demand and supply in the stock market
• Reflects investors’ expectations, news, sentiment, and performance
• Changes continuously during market hours
• Used for buying and selling shares in the secondary market
• Fluctuates intraday
• Investors transact with other investors via stock exchanges
• Shares are listed and traded on stock exchanges
Key Difference (Quick Recall)
• NAV = fund value per unit (once a day)
• Share price = market-driven price (all day)
NAV is the per-unit value of a mutual fund calculated daily based on assets and liabilities, while share price is the market-determined price of a company’s stock that fluctuates throughout the trading day.
NAV (Net Asset Value)
• Refers to the price per unit of a mutual fund
• Calculated as: (Total assets − Total liabilities) ÷ Total units outstanding
• Represents the true underlying value of the fund per unit
• Calculated once per day, usually at the end of the trading day
• Used for buying and redeeming mutual fund units
• Does not fluctuate during the trading day
• Investors transact directly with the fund manager
• Mutual fund units are not traded on stock exchanges
Share Price
• Refers to the market price of a company’s share
• Determined by demand and supply in the stock market
• Reflects investors’ expectations, news, sentiment, and performance
• Changes continuously during market hours
• Used for buying and selling shares in the secondary market
• Fluctuates intraday
• Investors transact with other investors via stock exchanges
• Shares are listed and traded on stock exchanges
Key Difference (Quick Recall)
• NAV = fund value per unit (once a day)
• Share price = market-driven price (all day)
NAV is the per-unit value of a mutual fund calculated daily based on assets and liabilities, while share price is the market-determined price of a company’s stock that fluctuates throughout the trading day.
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