Course 102: Mutual Funds and NAVs
Calculating the NAV
In this course
1 Introduction
2 Calculating the NAV
3 So Alike but So Very Different
4 Uses of NAV

A mutual fund calculates its NAV by adding up the current value of all the stocks, bonds, and other securities (including cash) in its portfolio, subtracting the manager's salary and other operating expenses, and then dividing that figure by the fund's total number of shares. For example, a fund with 500,000 shares that owns $9 million in stocks and $1 million in cash has an NAV of $20.

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