Sebi proposes swing pricing for MF plans to help ease redemption pressure

Swing pricing is a mechanism by which fund houses can adjust a scheme’s net asset value (NAV) in response to the flows into or out of the fund. It could also reduce the impact of redemptions on existing investors by reducing dilution of the value of a fund’s units. Most developed markets including the US, the UK, France and Hong Kong use the swing pricing mechanism.

via Economictimes

No comments