How dous the net asset value of mutual fund(NAV) is fixed?

the nav or net asset value of a open ended mutual fund (not closed to new investors)is determined each and every day that the stock and bond market are open for trading (business day) it is determined by a math calculation that takes the value of the underlying assets of the fund including cash, dividends, interest, capital gains earned from those assets in the fund (this does not include the current days new money from new investors or new money to be invested this would be done after the nav is determined each day.)then subtracting any and all liabilities of the fund that are owed as of that day(to include management fees, administration fees and overhead.)divided by the total number of outstanding shares in the fund (number of shares owned by the investors of the fund) would equal the net asset value per share of the mutual fund for that day and is usually reported

The NAV of a MF is determined by calculating the Net Realizable Value on each and every working day. This is done tracking the Market Prices of the Investments made from the funds that particular fund owns. It includes the investments in shares, derivatives, bond, debentures etc. and then they deduct for any unprovided liability.
That's how the value of the fund is calculated. then they divide this value with the total no. of units floating in the market.

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