Ch.5 · SID, SAI and KIM Documents · hard
What is 'SEBI's swing pricing mechanism' for open-ended mutual fund schemes?
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EXPLANATION
Swing pricing allows AMCs to adjust the NAV by a 'swing factor' during periods of large net inflows (NAV swings up) or net outflows (NAV swings down). This ensures that transaction costs incurred due to large investor movements are borne by those transacting, rather than diluting returns for existing investors who are not transacting.
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