Net Asset Value

The net asset value (NAV) of a mutual fund is the price per share. For money-market funds, the NAV is typically $1. In no-load funds, you'll pay the NAV when you buy the shares. With load funds, the number of funds that you end up with depends upon the sales commission.

The NAV of a mutual fund is calculated by taking the value of the securities that the fund is managing and dividing that by the number of shares outstanding. A fund with net assets of $25 million and 1,000,000 shares outstanding has a NAV of $25.

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