Question of the Week

You currently own a mutual fund with a Net Asset Value (NAV) of $11.25, if in one month the NAV is $11.75 what is the change called?

a) Capital Gain
b) Capital Loss
c) Realized Appreciation
d) Unrealized Appreciation

Answer:

The correct answer is d
In mutual funds, the NAV is the total value of the fund's portfolio less liabilities. The NAV is usually calculated on a daily basis.

If you owned the mutual fund and the NAV rose, but you didn't sell the fund, you would have an unrealized appreciation.

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  1.

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    References from trusted friends or family members can help you find a financial planner; however, keep in mind that your friends' financial situations and goals may differ from yours and, therefore, their planners won't necessarily be the best fit for you.The Certified Financial Planner (CFP) Board of Standards certifies financial planners and maintains an online list of certified financial planners on its CFP Board of Standards website.
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