5
QuizLong Text

Mutual Funds

Question 5 • Financial Math A

Explain why the offer price is used to calculate the investment in a load mutual fund instead of the net asset value.

Answer

Answer:

The offer price is used because it includes the mutual fund's sales charge, or load. The NAV only represents the value of the fund's assets per share and does not include this charge, so the offer price determines the amount invested in a load fund.

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