Episode Summary

If you buy an individual stock, you can instantly see the bid-ask book and know precisely what price you are going to pay. But when you place an order to buy or sell a mutual fund, you are forced to make a blind commitment: you agree to the transaction first, and you only discover the price you paid after the markets close for the day. In this episode, we pull back the curtain on Net Asset Value Per Share (NAVPS) and explain why this forward pricing model is actually an elegant security mechanism designed to protect you, rather than a broker inconvenience. We walk through the exact closing-bell math of a fictional $485 million Canadian equity fund to show how the valuation agent deducts daily accrued management fees, expenses, and unsettled trades to generate a single, uniform price of  ...