Understanding Net Asset Value (NAV) and Building a Net Asset Value Calculator
Net Asset Value (NAV) is a crucial financial metric used to assess the value of mutual funds or investment funds. It represents the per-share value of a fund’s assets minus its liabilities. Calculating NAV accurately is essential for both investors and fund managers to understand the fund’s performance and make informed investment decisions. In this article, we’ll delve into the concept of NAV and guide you through the process of building a simple Net Asset Value Calculator using HTML and JavaScript.
Step 2: Explanation of the Code:
- The HTML form collects input values for total assets, total liabilities, and total shares.
- The “Calculate NAV” button triggers the JavaScript function
calculateNAV()when clicked. - The JavaScript function reads the input values, performs the NAV calculation, and displays the result in the designated paragraph element.
Conclusion:
Understanding Net Asset Value is crucial for investors and fund managers to assess the performance of investment funds accurately. By building a simple Net Asset Value Calculator using HTML and JavaScript, you’ve taken a step towards comprehending this essential financial metric. This calculator can be a valuable tool for quickly assessing the NAV of mutual funds and gaining insights into their financial health.