What is a Share Worth?

The value of a mutual fund share is calculated based on the value of the assets owned by the fund at the end of every trading day. Here is how it works:

The fund calculates the value
A share's value is called the Net Asset Value (NAV). The fund calculates the NAV by adding up the total value of all of the securities it owns, subtracting the liabilities of the fund and then dividing by the number of shares owned by shareholders.
Value changes daily
Since the value of the stocks or bonds owned by the fund change daily, the value of the fund also changes daily. Therefore, a fund is required by law to calculate its price once every trading day to provide investors with the most current NAV.
How many shares you own
To calculate the value of your investment, you multiply the value of one share by the number of shares you have in the fund. While you cannot buy a fraction of a share of stock, you can own a fraction of a mutual fund share, if the amount you invest does not divide evenly by the NAV.

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