I want to know how to calculate the NAV discount. I've heard about this concept but I'm not sure how to actually compute it. Can someone explain the steps or formula to calculate NAV discount?
5 answers
KimchiQueenCharmingKissWarmth
Mon Jan 06 2025
It involves determining the percentage difference between the NAV and the market price of a mutual fund.
KimonoSerenity
Mon Jan 06 2025
The calculation of NAV discounts is a straightforward process.
ShintoSanctuary
Sun Jan 05 2025
In the given example, the NAV of a mutual fund is $11.
SamsungShineBrightness
Sun Jan 05 2025
However, its market price is only $9. This means there is a discrepancy between the two values.
LucyStone
Sun Jan 05 2025
To find the NAV discount, we simply divide the difference by the NAV and multiply by 100. In this case, it would be (10-9)/10 * 100 = 10%.