The price per share (unit) of a mutual fund is called the net asset value (NAV).
The equation to calculate NAV is:

NAV = (total value of the mutual fund) / (the number of shares outstanding)

Mutual fund price (NAVs) are listed in the financial section of major newspapers, and on the Internet.

The XYZ Mutual Fund has the following stocks and there are 1,000,000 shares outstanding. What is the NAV of the XYZ Mutual Fund?

 G.E. 80 100,000 8,000,000 Coca-Cola 70 100,000 7,000,000 Microsoft 140 100,000 14,000,000 Exxon 60 100,000 6,000,000 Merck 110 100,000 11,000,000 Total 46,000,000

:
NAV = (total value of the mutual fund) / (the number of shares outstanding)

NAV = 46,000,000 / 1,000,000

= \$46

The NAV of the XYZ mutual fund is \$46.

Fidelity Investments Select Math Funds published a NAV of \$25 in the Wall Street Journal and has two million shares outstanding. The fund invests all of its money in technology stocks. What is the total value of the stock owned by Select Math Funds?

Estimate the answer:

Less than \$40 million
Between \$40 million and \$60 million
Over \$60 million