Discount to NAV

Discount to NAV is the percentage by which a fund’s market price is below its net asset value per share.

Why this matters to income investors

A market discount changes the price paid for fund assets but can persist or widen.

How to use discount to nav in your research

Compare the cash distribution with the fund’s reported income, gains, and net asset value over several periods. Check the source and sustainability of the payment rather than relying on its quoted rate.

This material is general education and information, not individualized investment, tax, or legal advice.