Mutual funds are easy to see-through. You can identify the stocks in a mutual fund just by a click on your computer. Many financial websites list the holding of funds. The price of a stock often called a unit, is posted on such websites through which you can easily find out if you use an online discount agent.

Mutual fund trades are subjected to a variety of fees. Some of them carry a sale charge or load, which are basically the fees you pay to trade shares in the fund, similar to paying a cut on the stock trade. These can be in the form of direct payments or fees you pay when you sell stocks.

Net Asset Value :

The easiest way to find out the rate of a mutual fund asset is to look at its net asset value. Net asset value(NAV) is the value of a fund’s asset less of the liabilities. Many mutual funds use this formula to determine the price for negotiating units of the fund. When you trade mutual funds, you generally do so according to the formula.

Changes in Net Asset Value :

For most mutual funds, the NAV is determined every day since a mutual fund’s portfolio consists of many different assets. As prices of these stocks change rapidly throughout the day, an exact number of a mutual fund is hard to ascertain. Thus, mutual fund companies have decided to value their portfolio once every day, this is the price at which investors must trade the mutual fund.


Your Actual Price :

When you buy or reclaim a mutual fund, you are buying directly with the fund, whereas with exchange-traded funds and stocks, you are trading on the subsidiary market, according to Fidelity Investments. Unlike stocks and ETFs, mutual funds trade only once per day, after the markets close at 16:00 hours ET.

How to Get Your Desired Price :

If you take exchange-traded fund (ETF), an index fund trading like a share, the NAV is first fixed the same way it is for shares. Buyers and sellers bid on the stocks, the price fluctuates every moment. You can place a limit order, and it will accomplish when the ETF share price is at or below your limit price.


While the price of a mutual fund is easy to ascertain, the truth is, no one knows what it will be worth when your buy order is implemented. You will find out the next day what you bought it for. The only way to get the price you want is to buy an exchange-traded fund instead of a mutual fund.


Ashutosh Gupta

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