Hello All,
how to figure out the premium you are paying on gilt fund due to demand-supply so I can decide whether to invest or not??
Thank you,
Sumit
You mean ETF? Or mutual fund
SBI Magnum Gilt Fund…
What will you calculate premium then. It’s a mutual fund.
Premium calculation only comes in ETF. NAV calculation is already done by mutual fund. You buy at that Nav itself.
Now market might price a bond below it’s actual value, but I’m not sure if the fund includes the lower price in the NAV. But that is too much effort for you to calculste since gilt funds don’t move much.
Just buy the fund. Instead of thinking this much 
. Mutual funds are meant for having less headaches.
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There is no demand supply in mutual fund. You give money to the fund and it assigns you units at that day’s NAV.
Mutual fund buys from market where demand supply etc will exist, but they take of that for you. So just invest
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