I was checking Reliance Tax saver scheme under ELSS and found to be of different rate of NAV than rate of NAV at MYSIPONLINE. why such discrepancy
Because one of the fund is regular and other (one you are seeing in coin) is direct.
So I think NAV of direct is lower than regular as it consist their commission as well.
Nah…it’s the other way around…NAV of direct will be higher
Why does it also consist commission?
Direct doesn’t have commission, that’s why it’s NAV is higher
I guess NAV value is fix by market independent of whether I buy it directly or regular
NAV is just per unit value of underlaying assets. As a fund start journey from same face value say ₹10/unit, the direct fund’s NAV over large period of time is going to be greater than regular.
Reason behind is quite simple, for regular part of fund AMC have to pay commissions to distributors and these are covered in expenses.
So value of direct fund ends up being greater than regular.