NAV · Net asset value
Unit price (NAV)
The price of one unit in a managed fund — the fund's net asset value divided by the number of units on issue. The unit price is what you transact at when buying or selling.
The unit price (also called net asset value, or NAV, per unit) is the value of one unit of a managed fund. It is calculated by taking the total value of the fund's investments minus liabilities (the net asset value), divided by the number of units on issue.
For traditional managed funds, the unit price is calculated daily after market close. Buy and sell orders submitted before the manager's daily cut-off are filled at the next-calculated unit price (called "forward pricing").
For ETFs, the unit price equivalent is the live NZX market price, which trades close to but not always exactly equal to the underlying NAV. Authorised participants arbitrage any persistent gap.
Related terms
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etf-vs-managed-fund
ETF vs managed fund
An exchange-traded fund (ETF) is a managed fund whose units trade on a stock exchange like a share. A traditional unit-priced managed fund is bought and sold directly with the manager or platform at the fund's daily NAV.
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managed-fund
Managed fund
A pooled investment vehicle where many investors' money is combined and managed collectively against a stated investment objective by a professional fund manager.