Ch.7 · Total Expense Ratio Limits · medium
What is the difference in NAV calculation frequency for close-ended vs open-ended schemes?
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EXPLANATION
SEBI requires both open-ended AND close-ended schemes to calculate and publish NAV on every business day — not just periodically. For close-ended schemes listed on exchanges, the daily NAV serves as the reference value even though unit holders transact at exchange-traded prices (which may differ from NAV). The daily NAV enables investors to assess premium/discount to NAV.
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