Chapter 4. MUTUAL FUNDS AND OTHER MANAGED INVESTMENTS. Chapter 4 Questions. What is a mutual fund? How does one compute the net asset value (NAV)? What expenses and changes might a mutual fund investor face?
MUTUAL FUNDS AND OTHER MANAGED INVESTMENTS
NAV= Market Value of Assets – Liabilities
Number of Shares Outstanding
Three sources of return:
Return = (ID + CGD + DNAV)/Beg.NAV
Fees and expenses: Do higher fees pay off?
Closed-end investment companies
Exchange-traded funds (EFTs)