Which type of fund typically trades at its Net Asset Value (NAV)?

A no-load fund typically trades at its Net Asset Value (NAV). These funds allow investors to buy shares directly from the fund without incurring a sales charge or commission, which means that the price investors pay for the shares reflects the current NAV. The NAV is calculated at the end of each trading day and represents the total value of the fund's assets minus its liabilities, divided by the number of outstanding shares.

In contrast, load funds involve a sales charge that is applied either at the time of purchase or sale of the shares. This means they do not trade at NAV since the investor pays a premium on top of the NAV. Exchange-traded funds (ETFs) can trade at prices above or below NAV throughout the trading day based on supply and demand dynamics in the market. Closed-end funds also trade on the stock exchange and may have market prices that deviate from their NAV due to factors such as investor sentiment and demand, meaning they are subject to market fluctuations and may trade at a premium or discount to NAV.