What is the net value of assets per share?
The net value of the assets per share is associated with a mutual fund and is a method of determining the price that investors apply to join the fund. The calculation of this value requires the takeover of the net value of assets or NAVs, all securities in the Fund and the division of outstanding shares held by investors. This calculation of the net value of the assets at the share is determined by the market price of mutual funds, which pays its investors through the capital gains that occur when the value of the securities in them increases. However, there are some mutual funds that are traded in the open market and have their market price for investors. Open mutual funds take capital from multiple investors and then return capital when the value of the securities they invest is increasing. These types of funds are opened on the market and, as a result, it has its price determined by the net value of the assets per share.
The first step in the dischargeI read the net value of the assets on the share of the mutual fund is to determine the NAV, which is the total value of the assets in the minus of the total total obligation. As an example, imagine that the fund has an asset worth $ 100,000 (USD) and USD $ 20,000 at the end of the Trade Day, which is the moment the NAC is calculated. For this fund, the VIN is $ 100,000 minus $ 20,000, which comes to $ 80,000.
Once this number is reached, it is divided by the total number of unpaid shares in the fund to determine the net value of the assets per share. If the Fund of the above example had 4,000 shares owned by investors, this number would be divided into $ 80,000. This means that the market price of this particular mutual fund is 20 USD Per Share, which is the price, investors must pay for participation in the fund.
There are some funds that are traded in an open market. These funds, known as closed or replaced funds, are traded as well as stocks. Investors buy and sell stocks and marketsIt is based on supply and demand forces. Although there is still a calculated net value of assets per share, it may not correspond to the market price. It believes that the fund traded on the stock market with a lower market price than the NAV on the share is traded with a bonus.