NAV discount, or Net Asset Value discount, is the difference between a closed-end fund’s net asset value (NAV) and its market price. This discount can be expressed as a percentage or as an absolute value.
NAV discounts are important because they can indicate whether a fund is trading at a premium or a discount to its intrinsic value. This information can be used by investors to make informed decisions about whether to buy, sell, or hold a particular fund.