Unformatted text preview: 55%;: Background on Mutual Funds
,(confd) \ I Information contained in a prospectus
i:i The minimum amount of investment required
CI The investment objective i:i The return on the fund over the past year. the past
three years. and the past ﬁve years D The exposure of the fund to various types of risk
i:i The services offered by the fund E1 The fees incurred by the ﬁnd that are passed on to
investors . (cont'd) I Estimating the net asset value El The net asset value (NAV) of a mutual fund indicates - .
the value per share
I Estimated each day by determining "is market value of all
semrities wmprising the find, adding interest or dividends.
end subtracting expenses then Eli-riding by the number of
shares outstanding I ‘ Philly Mutual Fund has 50 million shares lesued to its
» ‘ investors. It used the proceeds to buy stock in 100
3‘ different firms. These shares have a market value of
i $100 million. In addition. Philly incurred $7,000 in ' expenses today and collected interest and dividends
‘ totaling $5,000. What is the net asset value per share? Net asset value = Market value of hand/number of shares ...
View Full Document
- Spring '10