Howdy All,
how to determine the premium you might be paying on gilt fund as a result of demand-supply so I can resolve whether or not to take a position or not??
Thanks,Sumit
You imply ETF? Or mutual fund
What’s going to you calculate premium then. It’s a mutual fund.
Premium calculation solely is available in ETF. NAV calculation is already carried out by mutual fund. You purchase at that Nav itself.
Now market may value a bond beneath it’s precise worth, however I’m unsure if the fund consists of the cheaper price within the NAV. However that’s an excessive amount of effort so that you can calculste since gilt funds don’t transfer a lot.
Simply purchase the fund. As a substitute of considering this a lot
There isn’t a demand provide in mutual fund. You give cash to the fund and it assigns you items at that day’s NAV.
Mutual fund buys from market the place demand provide and many others will exist, however they take of that for you. So simply make investments