Question

mutual funds NAV affected by ____​

Answer 1

How Distributions Affect Net Asset Value. A mutual fund's NAV is calculated by dividing the value of the fund's assets by the number of the fund's outstanding shares. When a fund distributes dividend payments to its shareholders, the NAV declines.

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Answer 2

ANSWER :

★ Value of underlying securities of the fuńd

• ✎ Mutual fuńds NAV is affected by the value of underlying securities of the fuńd.

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EXPLANATION :

• ➺ The full form of NAV is Net Asset Value.

• ➺ Net Asset Value (NAV) of a mutual fuńd is the price at which units of securities of a mutual fuñd are bought or sold.

• ➺ NAV is the market value of the mutual fuñd after deđucting liabilities.

• ➺ Sometimes, NAV of a mutual fuńd is also referred to as Net Book Value or Book Value the mutual fuñd.

• ➺ NAV represents a fuńd's per unit market value and hence it is the price at which investors buy (bìd price) fuńd units from a fuńd house and sell (redèmption price) them to a fuńd house.

• ➺ As NAV of a mutual fuńd is depėndent on the value of underlying securities of the fuñd, it is affected by it.