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NAV Premiums, Discounts, and iNAV

Premium-to-NAV, discount-to-NAV, and indicative NAV terms used in fund price analysis.

NAV Premiums, Discounts, and iNAV terms explain how funds calculate value, report performance, quote yields, handle flows, and trade at premiums or discounts to portfolio value.

Use this branch when the key issue is NAV, per-share value, offer price, historical performance, yield reporting, fund flows, or liquidity pressure.

Key Terms in This Branch

TermUse it for
Discount to NAVA fund valuation, performance, yield, flow, or market-price term.
Indicative Net Asset Value (iNAV)A fund valuation, performance, yield, flow, or market-price term.
Premium to NAVA fund valuation, performance, yield, flow, or market-price term.

What to Check

Check valuation time, portfolio inputs, stale or illiquid holdings, bid-ask spread, premium or discount, yield formula, distribution policy, flow pressure, and whether performance is before or after fees.

Common Mistakes

  • Comparing NAV, market price, offer price, and yield as if they were the same measure.
  • Ignoring stale pricing, illiquid holdings, and valuation timing.
  • Reading historical performance without checking survivorship or fee treatment.
  • Assuming high distribution yield equals high total return.

This page is educational and does not recommend a specific fund, security, tax treatment, or account choice.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Discount to NAV

Situation in which a fund's market price trades below its net asset value, most often discussed for closed-end funds.

Premium to NAV

Situation in which a fund's market price trades above its net asset value, often because investors value the structure or strategy more highly than the portfolio alone.

Revised on Sunday, June 21, 2026