> For the complete documentation index, see [llms.txt](https://docs.immutablevision.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.immutablevision.com/defi-asset-management/net-asset-value-nav.md).

# Net Asset Value (NAV)

**What is NAV?**

NAV stands for **Net Asset Value**. It's a key concept in understanding the value of an investment fund, like the Prime Funds offered by Immutable Vision. In simpler terms, NAV represents the **total value of all the assets** held by the fund, minus its performance fees, divided by the total number of outstanding shares.

**NAV and Price Volatility:**

Since Prime Funds include many cryptocurrencies, their NAV is susceptible to price volatility in the crypto market. A sudden drop in the price of for eg: Ethereum, Cardano or Injective could decrease the fund's NAV.

**Remember:**

Diversification helps mitigate risk, but it doesn't eliminate it completely. The NAV of Prime Funds will still fluctuate based on the performance of the underlying assets.

**NAV Example**

Below is an eg of the NAV on Prime Fund I reaching a peak of $3.11 per share on 14th March

<figure><img src="/files/jt3enAPHqxaZPa74tAlh" alt=""><figcaption><p>Prime Fund I</p></figcaption></figure>

**Example:**

Demonstration Purposes Prime Fund I holds:

* $1000 worth of Ethereum
* $1000 worth of Solana
* $1000 worth of Near

The total value of the fund's holdings would be £3000 (assuming no other assets). If the price of Ethereum increases by 10%, the total value would also increase, impacting the NAV per share