The net asset value (NAV) of a mutual fund represents the mutual fund’s assets less its liabilities. The management expense ratio (MER) of a mutual fund represents the costs of a mutual fund, and those costs are deducted as liabilities before NAV is calculated.
There are other factors that affect calculation of NAV. You should review the NAV in the mutual fund’s prospectus to understand how it is calculated. Learn more about mutual funds and NAV and where to get information about investment funds.