The value of the investments in securities by a mutual fund scheme determines the Net Assets Value (NAV) of the scheme. Valuing a security entails determining the price that the investment can reasonably expect to fetch in an open market. However, such a price may or may not be readily available due to various constraints including the fact that the investment may not be traded in the market during a particular period or an investment is not listed and hence an acceptable and transparent market price may not be available. As the NAV is fundamental to the operation and success of each scheme, it is critical that, the process of determining the value of investments is efficient and produces accurate and reliable results.
The Securities and Exchange Board of India (SEBI) has prescribed the methods of and rules for valuation of investments in Schedule Eight of SEBI (Mutual Fund) Regulations, 1996 (‘the Regulations’). Each mutual fund is required to adhere to these rules and methods while valuing their portfolio of investments.
This document describes the Valuation Policy (‘the Policy’) of DHFL Pramerica Mutual Fund (‘DPMF’) and the process of valuation of investments made by DPMF in line with the Regulations and sets out the methodologies applied by DPMF in relation to the valuation of assets of the schemes of DPMF. This document aims to ensure that:
- DPMF values its investments in accordance with the principles of fair valuation so as to ensure fair treatment to all investors including existing investors as well as investors seeking to purchase or redeem units of mutual funds in all its schemes at all points of time;
- The process of calculating Scheme NAV is transparent and consistently applied; and
- The methodologies adopted are reviewed at appropriate intervals and revised as necessary to meet commercial and regulatory requirements.
For Disclosure Pertaining To Valuation Of Securities click here.
For Valuation Policy of the Company click here