Why Some closed - End funds sell at a discount to their NAV? - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
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Saturday, June 04, 2016

Why Some closed - End funds sell at a discount to their NAV?


 Some closed - End mutual funds sell at a discount to their NAV because

A. The re-purchase price fixed by the mutual fund is lower than its NAV.

B. Of the inherent risk prevalent in closed - end funds.

C. Mutual fund Investors expect their future potential to be unable to sustain their current NAV.

D. Of high expense ratio.


  NAV- Net Asset Value

Answer
  C. Mutual fund Investors expect their future potential to be unable to sustain their current NAV.




Why Some closed - End funds sell at a discount to their NAV? Reviewed by S. Chitra on June 04, 2016 Rating: 5  Some closed - End mutual funds sell at a discount to their NAV because A. The re-purchase price fixed by the mutual fund is lower than ...

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