Ch.10 · Benchmarks and Performance Evaluation · medium
What is 'mark-to-market' (MTM) valuation in debt mutual funds?
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EXPLANATION
Mark-to-market (MTM) valuation requires mutual funds to value their securities at current market prices rather than cost. For debt funds, this means NAV changes daily based on bond price movements (which inversely relate to interest rate changes). SEBI mandates MTM for most debt securities, ensuring NAV reflects true current market value.
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