All orders placed before 400pm buy at this nav fund

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All orders placed before 4:00pm buy at this NAV Fund companies adjust the number of shares according to the demand by investors Net asset value (NAV) = Market value of assets - Liabilities Shares outstanding
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Mutual Funds Open-end funds You buy or sell shares directly through the mutual fund Shares are purchased at NAV per share NAV is calculated every day at 4:00pm All orders placed before 4:00pm buy at this NAV Fund companies adjust the number of shares according to the demand by investors
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Open-End Fund Example Fund ABC 4:00pm Monday: Total Assets = 36 billion Total Liabilities = 1 billion Shares Outstanding = 900 million NAV = 35B/900M = $38.89 Throughout day on Tuesday Asset Value increases by 1% New flows of $500,000
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Open-End Fund Example 4:00pm on Tuesday Asset value is now 36B(1.01)=36.36B NAV = 35.36B/900M=39.29 New Flows of $500,000 500,000/39.29 = 12,726 shares New investors buy these shares at 39.29 per share Total shares outstanding = 900M + 12,726 Total Assets = 36.36B + 500,000
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Open-End Example In this example, there are no fees, and no distributions (dividends or capital gains) Return from owning fund % 029 . 1 1 89 . 38 29 . 39 = - = ret
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How Funds are Sold Fund “underwriter” has exclusive rights to distribute shares of the fund. Funds are sold to public by underwriter, or indirectly through brokers who act in behalf of underwriter. Financial Supermarkets Example: Charles Schwab
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