Net asset value (NAV) is an important financial ratio that represents the value of the assets of an organization, company or investment fund after deducting its liabilities. The NAV is calculated by adjusting the total value of the company's or fund's assets (such as cash, securities, real estate) for liabilities (such as debts, obligations). The NAV per share or unit reflects the value of an individual share or unit. The net asset value serves as an important indicator for investors to determine the intrinsic value of an investment or fund and to track performance over time. A rising NAV indicates a potential increase in value, while a falling NAV may indicate a potential decrease in value. However, particularly in the case of alternative investments, the NAV can also be influenced by payments in (NAV increases) or payments out (NAV decreases).