The net asset value of a mutual fund ________.

Question

Quizplus · Accepted Answer

The net asset value (NAV) of a mutual fund reflects the total value of the underlying holdings in the fund. It is calculated by dividing the total assets of the fund by the number of outstanding shares. While NAV is not fixed and can change with market conditions, it is a useful measure for investors to understand the value of their investment. Load or no-load status is determined by the fees charged by the mutual fund, not by the NAV. Capital gains or losses can affect the NAV of a mutual fund.

The Net Asset Value of a Mutual Fund ________