How often are mutual fund prices typically calculated?

Mutual fund prices are typically calculated on a daily basis. This daily pricing is essential for investors to know the current value of their shares in the fund, as it allows them to make informed decisions about buying or selling their mutual fund holdings. The calculation of net asset value (NAV) occurs at the end of each trading day, reflecting the total value of the fund's assets minus its liabilities, divided by the number of outstanding shares.

This frequency of pricing supports liquidity and transparency, enabling investors to react to market changes more promptly. When funds calculate their prices daily, it accommodates the dynamic nature of financial markets, where asset values fluctuate continuously. Other options, such as weekly, monthly, or yearly calculations, would not provide investors with timely or relevant information to make efficient investment decisions.