28 How accurate are the mutual fund prices in the newspaper?
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This article is from the FAQ, by with numerous contributions by others.
28 How accurate are the mutual fund prices in the newspaper?
According to the Investment Company Institute (ICI) fund pricing is almost
99.5% accurate. Lipper Analytical Services estimates the number to be closer
to 98.95%.
Mutual funds are required to submit to the NASD a daily pricing of the fund's NAV.
The NASD then distributes this information to the press and news/quote services.
Occasionally a fund may err in pricing the securities in the portfolio which results in
an inaccurate NAV being distributed to the press. Fortunately, even the rare mispricing
is usually detected and corrected prior to any processing of mutual fund buy and sell orders.
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