Why does the NAV of GILT funds change daily?

Bonds
1

I’m observing for the past few days that the NAV of SBI Magnum GILT fund is changing daily. Does the interest rate change daily to cause the NAV change?

2

yes.
Most GILT are daily traded in market, like stocks. While variation in prices are not as high as stocks, there is still a variation
So in turn their prices (and accordingly YTM) also changes frequently in a day.
Depending on day end prices, NAV of funds holding it also changes.

3

so how to determine which nav should one buy as it should be close to the value of the underlying bond…

4

The variations are not really that high to worry about daily changes

1 Like
5

thank you…