A situation wherein the market price of a mutual fund is trading below its net asset value. This condition only occurs in closed-end mutual funds since they are not bought and sold at prevailing net asset values. A discount arises when there is much supply and less demand for the fund or when the fund is expected to have poor performance in the future.
Related information about discount to net asset value:
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Definition of discount to net asset value: A situation wherein the market price of a mutual fund is trading below its net asset value. This condition only occurs in ...
- Net Asset Value - Sprott Physical Bullion Trusts
Market Price - Historical Premium/Discount to Net Asset Value. Since inception on October 29, 2010. Note: click and drag on the graph to view detailed data.
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a 25 percent discount to net asset value. In 1988, the price at each week's end ranged from a 6.7 percent premium to a 17.9 percent discount. Though fund ...