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1 pages/≈275 words
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Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
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Topic:
Vanguard Mutual Fund and Computation of Net Asset Value
Essay Instructions:
Choose a mutual fund, provide the previous day's net asset value (NAV), and determine how this price was calculated. Next, compare the performance of the fund to its benchmark and explain why you think the mutual fund price and benchmark are moving in a certain direction.
To find a specific mutual fund, you can search on your own or go a specific fund family such as Vanguard, T. Rowe Price, Pimco, or BlackRock. Once you find a specific fund, its benchmark should be listed within the fund information on the fact sheet/prospectus. An example of the T. Rowe Price Capital Opportunity Fund (PRCOX) is shown below.
a screen capture showing a barchart of financial benchmarks for the T. Rowe Price Capital Opportunity Fund (PRCOX).
Essay Sample Content Preview:
Vanguard Mutual Fund
Institution’s Name
Student’s Name
Course Title
Instructor’s Name
Due Date
Vanguard Mutual Fund
Choose a mutual fund, provide the previous day’s net asset value (NAV)
My preferred mutual fund is Vanguard. The Mutual fund’s NAV as of 25th March 2022 was $419.25 (Yahoo Finance, 2022).
Determine how NAV was calculated
NAV refers to a company’s “Net Asset Value.”The NAV is the price at which a mutual fund may be purchased by an investor or returned to the fund house. The total expense ratio is subtracted from the total asset value, and the result is divided by the total number of outstanding units. In other words, a mutual fund’s net asset value is distinct from its total asset value (Komariah et al., 2020). A mutual fund comes with a slew of costs. A mutual fund’s annual costs are summed up and deducted from the total asset value to compute NAV. Management fees, operating costs, transfer agent fees, and custodian and audit charges are all included in the expenses ratio, as are distribution and marketing costs.
The NAV is calculated using the following fo...
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