How is the price of a mutual fund share determined?
The price of a mutual fund share is determined using the Net Asset Value (NAV). The NAV is calculated by dividing the total assets of the mutual fund, including stocks, bonds or other securities owned by the fund, less liabilities, by the number of outstanding shares. The NAV does not include sales charges. Unlike stocks, the NAV of a given mutual fund is generally calculated only once a day after the market closes. For a “no load” fund, you will pay the NAV per share. For a “load” fund you will pay the Public Offering Price (POP) which is the NAV plus the load.
