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NAV Computation
Asset Valuation
Learning Outcome
5
Analyze the impact on AUM, net assets, and NAV.
4
Calculate portfolio market value.
3
Understand SEBI and AMFI valuation guidelines.
2
Differentiate MTM, amortisation, fair value, and yield matrix methods.
1
Define asset valuation and its role in NAV calculation.
What is Asset Valuation?
Asset valuation is the process of determining the current market value of a fund's investments.It forms the basis for calculating the fund's NAV.
Simple Analogy
The Grocery Basket Analogy:
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Summary
5
It ensures accurate performance measurement.
4
Higher accruals can improve NAV.
3
It increases the fund's assets and valuation.
2
Sources include interest, dividends, and lending fees.
1
Income accrual records income when it is earned.
Quiz
What is the primary purpose of income accrual in fund accounting?
A. To record income only when cash is received
B. To recognize income when it is earned
C. To reduce fund liabilities
D. To calculate management fees
Quiz-Answer
What is the primary purpose of income accrual in fund accounting?
A. To record income only when cash is received
B. To recognize income when it is earned
C. To reduce fund liabilities
D. To calculate management fees
Fixed Income Portfolio Strategy - Asset Valuation
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