Pro lesson, preview locked
Unlock the full video and walkthrough with FinanceFlow Pro.
5:00NAV Calculation: the 4pm ritual that prices your fund
Every weekday at 4pm Eastern, the stock market closes and a quiet machine springs to life: it values every holding, subtracts every cost, and stamps a single price on your fund. Trade before the bell and you get tonight’s number, even though you won’t learn it until after you’ve committed.
Unlike a stock, an open-end mutual fund has no live, tick-by-tick price. It is valued once per business day through a back-office process called fund accounting (also "securities accounting" or "investment accounting"), and the output is a single number: the Net Asset Value per share, or NAV. In the US the Investment Company Act of 1940 and its rules govern how this is done.
Unlock the full lesson with Pro
The complete walkthrough, rail map and quiz for NAV Calculation: the 4pm ritual that prices your fund, plus every Pro lesson in the library.