Mutual funds, a popular investment vehicle, are sold at net asset value without any sales charge. This value represents the total worth of the fund's assets, divided by the number of shares outstanding. In simpler terms, it is the per-share price of the fund. This pricing structure is beneficial for investors as it ensures transparency and eliminates any additional fees. It also allows for easy comparison between funds without the confusion of sales charges. Understanding this concept is crucial for making informed investment decisions and maximizing returns.
