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What is a mutual fund's NAV?


NAV (Net Asset Value) of the fund is the cumulative market value of the assets of the fund net of its liabilities. NAV per unit is simply the net value of assets divided by the number of units outstanding. Buying and selling into funds is done on the basis of NAV-related prices.

NAV is a financial entity's assets minus its liabilities. For funds and trusts, NAV is typically quoted on a per-share or per-unit basis; NAV is calculated as the portfolio value minus any debts, divided by the number of shares or units outstanding. When selling a fund investment, the price is based on NAV minus any redemption or deferred sales fees. The SEC requires mutual funds and investment trusts to recalculate NAV at least once a day. This is typically done after the major markets close. Being publicly traded, closed-end funds are exempt from daily reporting of NAV. The NAV of major mutual funds are reported much like stock prices, and can be found in the financial section of many newspapers.

  

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