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Mutual Fund Glossary -- N to Z

Definitions of terms used in reference to mutual funds (for terms from A to M, click here):


The name of the stock or fund.

Net Assets

The total amount of assets held by the fund.

Net Asset Value

NAV, or Net Asset Value, is the share price of a mutual fund. It is calculated by dividing the total net assets of the fund by the total number of shares outstanding. Value Line lists NAV as of the latest available month end prior to the issue date; for instance, for issue date February 24, the NAV is from January 31.

An investor purchasing shares of a fund with a front-end sales charge will pay a higher price--the offer price--which is calculated by dividing the amount invested by the actual number of shares purchased. For example, a person investing $1,000 in a fund with a 5 percent load and NAV of $10 actually invests only $950. He or she receives 95 shares and thus pays an offer price of $1,000 ~ 95 or $10.53.

Percent of Net Assets

The percentage of a fund's entire net assets represented by an individual holding.

Price/Book Ratio

A ratio of the price of a stock to its company's book value per share. Companies that are older, slower-growing, or depressed in price because of poor current earnings performance generally sell at low price/book value.

Price/Earnings Ratio

The price of a stock divided by its earnings per share.


The percentage of a fund's assets invested in each of six credit-quality levels, along with the average quality of the fund's fixed-income holdings.

Redemption Fees

An annual amount charged when assets are withdrawn from some funds. Unlike deferred fees, however, some redemption fees go back into the fund itself, rather than into the fund company's pockets, and thus do not represent a net cost to shareholders.


The number of shares of a particular stock held by a fund.

Standard Deviation

A measure of the variability of a fund's returns. The figure indicates the number of percentage points above or below the fund's average annual return within which any given annual return can be expected to fall two-thirds of the time.


The NASDAQ assigned symbol commonly used to locate the fund on electronic price-quoting systems.

Turnover %

This is a measure of the fund's trading activity which is computed by taking the lesser of purchases or sales (excluding all securities with maturities of less than one year) and dividing by average monthly net assets. A turnover ratio of 100% or more does not necessarily suggest that all securities in the portfolio have been traded. In practical terms, the resulting percentage loosely represents the percentage of the portfolio's holdings that have changed over the past year.

Weighted-Average Market Capitalization

Market capitalization is the value of a corporation as measured by multiplying the number of common shares outstanding by the current market price of a share.


The NASDAQ assigned symbol commonly used to locate the fund on electronic price-quoting systems.

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