Modification In NAV Computation |
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| As stipulated by the Insurance and Regulatory Development Authority (IRDA), in its circular bearing no. IRDA/F&I/CIR/INV/173/08/2011dated July 29, 2011 the formula for computation of the Net Asset Value Per Unit (NAV) for Linked funds stands modified. |
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| Old formula as prescribed by IRDA and as contained in the policy document: |
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| (i) Appropriation price computed as market value of investment held by the Unit Linked Fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of Fund Management Charges less the value of any current liabilities less provisions, if any, is applied when the Unit Linked Fund is a net buyer of assets. |
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(ii) Expropriation price computed as market value of investment held by the Unit Linked Fund less the expenses incurred in the sale of assets plus the value of any current assets plus any accrued income net of Fund Management Charges less the value of any current liabilities less provisions, if any, is applied when the Unit Linked Fund is a net seller of assets |
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| Modified formula as stipulated by IRDA effective from August 18, 2011: |
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Market value of the investment held by the fund plus value of current assets less value of current liabilities and provisions, if any and divided by the number of units existing on the valuation date (before creation/redemption of units) |
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The policy document shall accordingly stand modified. |
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