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    ETFs And Bonds

    How NAV is calculated in ETF?

    Net asset value (NAV)

    Like a mutual fund, an ETF also has an end of the day Net Asset Value (NAV).NAV tells you the total value of all the fund’s assets and yours. An ETF trades real-time, whereas NAVs are only announced at the end of the day. So how do you figure out if the price you are paying for an ETF is fair in real-time?
    Check iNAV

    Intraday or indicative net asset value (iNAV)

    Given that ETFs trade real-time, you need a reference point to see if the market price you see on your trading platform is a fair one and the indicative or intraday NAV (iNAV) serves as that reference. AMCs usually calculate this every 10-15 seconds and publish it on their websites. This serves as a real-time NAV so that you can use this as a fair value reference to compare it with the current market price on the stock exchanges.

    What are the risk associated with ETFs? Who can invest in ETFs? What is the settlement period for trading in ETFs? What are ETF Baskets? What are the cost of investing in ETFs? What are the types of ETFs I can invest in? What are Tax implications on ETFs? What are ETFs? How do they work?