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Mutual Funds
How to Read Mutual Fund Quotes |
Knowing how to keep track of your mutual funds
goes a long way toward easing the anxiety of investing. And the more you know about
your investments, the better decisions you'll be able to make in the future.
Mutual fund quotations are listed in many newpapers such as The Wall Street Journal
or Investors Business Daily. They provide valuable information about your funds.
If you're a new investor, having to decipher this fund data can be a trying experience.
Overcoming these frustrations requires two things -- patience and practice.
The following sample chart illustrates some of the common terms and symbols you'll find in
a mutual fund quotation:
Name |
NAV |
Offer |
Net Chg |
YTD |
Janus |
15.37 |
NL |
+.11 |
+8.0% |
1. Name
The fund company's name is usually listed first (alphabetically) followed by a list of
specific funds that the company runs. Janus Funds, in this example, sponsor a number of
funds -- Janus Twenty, Janus Wordwide, Janus Mercury, etc. Each fund would be listed
individually.
2. NAV
Net Asset Value. The NAV is the price per share of the fund. It's computed each day at the
close of the market by dividing the fund's net assets by the number of shares outstanding.
This is the amount you would have to pay if buying a share in the fund. To calculate the
value of your portfolio, simply multiply the NAV by the number of shares you own.
3. Offer Price
No-load funds will be indicated by a NL. Mutual funds that charge a commission,
or load, will show an offer price -- some may show a discount to the NAV. This is common
with load funds. Funds offered through systematic plans will show a NAV that is equal to
the offer price.
4. Net Change
Indicates how much the fund's price (NAV) has changed since the previous day's trading. A
plus "+" sign means the share price has increased and a minus "-" sign
means the share price has decreased.
5. YTD
Indicates the fund's performance as a percentage (assumes earnings reinvested).
Year-to-date performance is the standard measurement -- but may be shown as a 3-year,
5-year, or other annualized percentage.
Miscellaneous symbols:
e- fund distributed capital gains
p- fund has a 12b-1 fee
x- dividend distribution
s- share price has split
t- fund has a 12b-1 fee and a sales charge
r- fund has a redemption fee
Next: Taxes |
