Why do navs of debt funds fall?

why do nav's of debt funds fall?

Level - INTERMEDIATE

The NAV of a debt fund is pulled in opposite directions by its interest accruals and mark to market norms. This video illustrates how different factors can come together to reduce NAVs of debt funds. .

AUTHOR(S): Uma Shashikant

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Why do NAV's of debt funds fall?

 The NAV of a debt fund is pulled in opposite directions by its interest accruals and mark to market norms. This video illustrates how different factors can come together to reduce NAVs of debt funds. .

1 2 3

    1.Daily accrual rate of a debt fund depends on



  • Modified duration and expense ratio
  • Yield to maturity and modified duration
  • Yield to maturity and expense ratio
  • 2.For a given change in interest rate, the extent of marking to market would be highest for a fund with a modified duration of



  • 3 years
  • 0.25 years
  • 1 year
  • 3.The factor that makes NAVs of debt funds fall sometimes is



  • A drop in interest rates
  • Impact of mark to market
  • Poor selection of debt assets by the fund
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52 years ago

Good informative video on debt funds

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