NextPrevious

Mutual Funds

The Basics

How is a mutual fund priced?

The price of a mutual fund is its net asset value. The individual share price of an open-ended mutual fund is determined by the value of the net assets of the fund minus any liabilities held by the fund, divided by the number of shares outstanding. If a mutual fund has assets of $100 million, and liabilities of $10 million, its net assets are $90 million. If there are nine million shares of the stock outstanding, then the net asset value is $10.



Close

This is a web preview of the "The Handy Investing Answer Book" app. Many features only work on your mobile device. If you like what you see, we hope you will consider buying. Get the App