What does NAV stand for in the context of mutual funds?

Net Asset Value New Asset Valuation Nominal Asset Value National Asset Value

How is the NAV of a mutual fund calculated?

(Total Assets + Total Liabilities) / Total Outstanding Shares (Total Assets - Total Liabilities) / Total Outstanding Shares Total Assets / Total Outstanding Shares Total Liabilities / Total Outstanding Shares

What type of mutual funds is NAV most commonly used for?

Closed-end funds Open-end funds Index funds Exchange-traded funds (ETFs)

Which of the following is NOT considered an asset when calculating the NAV of a mutual fund?

Cash and cash equivalents Receivables Outstanding payments to lenders Accrued income

What is the primary factor that determines the daily NAV of a mutual fund?

The closing price of the securities in the fund's portfolio The number of investors in the fund The fund manager's performance The overall performance of the stock market

What is the key difference between the NAV of a mutual fund and the price of its equity share?

NAV includes both liquid and non-liquid assets, while equity share price only considers liquid assets NAV is calculated daily, while equity share price fluctuates in real-time NAV is used for open-end funds, while equity share price is used for closed-end funds There is no difference; NAV and equity share price are the same

Is a mutual fund with a lower NAV necessarily a better investment than one with a higher NAV?

Yes, lower NAV indicates a cheaper and more attractive investment No, NAV does not directly correlate with the fund's performance It depends on the investor's risk tolerance It depends on the fund's investment strategy

What should investors primarily consider when choosing a mutual fund to invest in?

The fund's NAV The fund's historical performance and returns The fund manager's reputation The fund's expense ratio