6
QuizMultiple Choice

Mutual Funds

Question 6 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Which of the following expressions is equal to the total investment of a no-load mutual fund?

Answer
A
net assets ÷ number of shares
B
net asset value ÷ number of shares
C
net asset value x number of shares
D
offer price x number of shares

Explanation

For a no-load mutual fund, the investment’s value is the net asset value per share multiplied by the number of shares owned. Thus, “net asset value × number of shares” gives the total investment. Dividing by the number of shares would instead find the value per share.

AI-written and checked against the verified answer.

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