Why price of the units being traded on the stock exchange is generally at a discount to NAV in case of close ended fund?
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So both the situation can be true that is price can be at premium as well as discount to NAV let’s understand the reason
Nav is calculated based on the closing price of the underlying assets
While the price at which the funds Trads in market is determined by supply n demand of investor b their future outlook
So if investor think that the future of investment made by fund house is not good he is pay less than the Nav