🖥️Net Asset Value (NAV)

Understanding NAV for a Cryptocurrency Fund

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

Prime Fund I

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