NAV / BID / OFFER Calculation and Average Cost

What is NAV ?

NAV or net asset value is the net value of an asset divided by all investment units that have been sold. NAV is calculated at the end of each business day.

Why does NAV fall after the date of register book closing for consideration of dividends ?

If a mutual fund incurs earnings, such earnings will accumulate, causing NAV to rise. Upon the date of register book closing, if the fund manager resolves to pay dividends, a part of the retained earnings will be used for a dividend payment, thus causing the fund asset to decrease and NAV likewise.

What are the calculation methods of average costs as shown in K-My Funds and K-Cyber Invest ?

The average costs will change upon each investment unit purchase or switch-in, but will remain intact upon redemption or switch-out, except for LTFs.

  • For the funds with a front end fee, the average costs have already included such fee.
  • The average costs arise from averaging the costs of investment unitholders upon each investment unit purchase or switch-in, based on international principles, except LTFs. The exhibited items may not be consistent with the policies of some funds.

I have invested in a fixed income fund that has no redemption fee, but in the next day the outstanding value is lower than the invested fund. Why has this happened ?

For investment unit purchase, the Offer price is used for calculating the value of acquired investment units, which is usually higher than THB0.0001/unit (as required by the SEC). For calculation of the outstanding value, the number of acquired investment units is multiplied by the NAV so that the outstanding investment value is lower than the invested value.