should you buy a fund that s trading above its nav 
buying a fund that s trading above nav may be a good idea but trading above nav isn t a reason to buy the fund on its own it could indicate investor confidence in the portfolio or high demand for the shares but it s important to consider your investment goals and the market risk of it going the wrong way on you before investing the bottom linenav return is the change in the value of a fund s net assets rather than the change in its share price most times you ll see they are quite similar but in some cases especially for cefs a fund can trade above or below its nav meaning its nav return will diverge from the return calculated based on changes in its share price understanding what can cause nav and fund returns to diverge such as splits in supply and demand or investor confidence in the fund s portfolio and managers is important if you re reviewing an investment prospect at an investment more generally the nav return is good to review along with other measures of returns as you look at the various funds you re considering 