How are mutual funds priced?

Mutual funds are priced based on their net asset value (NAV). The NAV is calculated by dividing the total value of the fund's assets, including stocks, bonds, and other securities, by the number of outstanding shares. This calculation is typically done at the end of each trading day.

To determine the price per share, the NAV is divided by the number of outstanding shares. This price is known as the fund's offering price or the purchase price. Investors can buy mutual fund shares at this price, which includes any sales charges or fees.

Mutual funds can also have different classes of shares, each with its own pricing structure. For example, Class A shares may have a front-end sales load, where investors pay a fee when purchasing shares, while Class B shares may have a back-end sales load, where investors pay a fee when selling shares. The pricing of each class of shares may vary based on the specific terms and conditions set by the mutual fund company.

It's important to note that mutual fund prices can fluctuate based on the performance of the underlying securities held in the fund. As the value of the fund's assets changes, the NAV and the price per share will also change. Investors can track the daily NAV and the historical performance of mutual funds to make informed investment decisions.