Hello. I have a daft question about Net Asset Values.

What exactly are they? Yes, we know that they can be trading as at a discount or a premium - but what is the reasoning that goes with those investment trusts trading at a discount are more attractive than those trading at a premium? Also, if one should ignore NAVs - what would be the advantage of disadvantage of this? I have always ignored it, mainly because I don't understand it - and then recently I discovered some well- respected sources also don't take it into account. So, how handicapped are we for ignoring it?

Any pointers will be gratefully received. 

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