Assets are one of two components of net worth, with the other one being liabilities. Liabilities are money you owe. For most people, that means consumer debt, such as credit cards and loan balances.

When evaluating a company, two important financial metrics often come up: net worth and market capitalization (market cap).

Generally, NAV remains positive as it depicts the net worth of a fund or a company. However, if the liabilities significantly exceed the assets, the NAV could theoretically become negative.

Understanding the average net worth by age allows you to look into your financial health and progress. See the coverage here.