InvestorQ : How the NAV of mutual funds investing in US stocks are calculated?
Niharika Kamble made post

How the NAV of mutual funds investing in US stocks are calculated?

Answer
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Nikita Damle answered.
2 weeks ago


In the US markets, NAV is calculated at the end of each trading day based on the closing market prices of the portfolio's securities. While NAV is computed and reported as of a particular business date, all of the buys and sell orders for mutual funds are processed based on the cutoff time at the NAV of the trade date.

For instance, if the regulators mandate a cutoff time of 1:30 p.m., then buy and sell orders received before 1:30 p.m. will be executed at the NAV of that particular date. Any orders received after the cutoff time will be processed based on the NAV of the next business day. Hope this answers your question.