Cryptocurrency Q&A
What does 5% discount to the NAV mean?
What does 5% discount to the NAV mean?
KimchiChic
Sat Jan 04 2025
|
6 answers
1208
I am trying to understand the meaning of a 5% discount to the Net Asset Value (NAV). Could someone explain what this discount implies and how it affects the value of an investment?
6 answers
MoonlitCharm
Mon Jan 06 2025
When the market price of a fund is lower than its NAV, it indicates that investors can potentially acquire the fund's underlying assets at a discount.
Was this helpful?
370
52
Valentino
Mon Jan 06 2025
For instance, if a fund has an NAV of $10 but is trading at $9 per share, it implies a NAV discount of 10%.
Was this helpful?
41
91
SamuraiHonor
Mon Jan 06 2025
On the contrary, a NAV premium occurs when the market price of a fund exceeds its NAV.
Was this helpful?
41
84
GangnamGlamour
Mon Jan 06 2025
The concept of NAV discount refers to a situation where the market price of a fund falls below its Net Asset Value (NAV).
Was this helpful?
260
66
Stefano
Mon Jan 06 2025
In simple terms, NAV represents the true value of a fund's assets minus its liabilities.
Was this helpful?
206
26
Load 5 more related questions
