InvestorQ : Would mutual fund schemes have real-time NAV?
Pavithra Prabhakaran made post

Would mutual fund schemes have real-time NAV?

seema Upadhyaya answered.
7 months ago

In open-ended funds, the NAV is updated by mutual funds at the end of every day. SEBI mandates mutual funds to update the NAV by 9 pm of every day. Most mutual funds update the NAV have their own specific time to update the AUM. This is of course before 9 pm.

The NAV is not updated live because of complications in constantly tracking the value of different assets held by a mutual fund. However, ETFs are a different case. Exchange-Traded Funds (ETFs) refers to a class of mutual funds that are traded on the stock exchange like stocks. ETFs can be traded anytime in the market but you need a Demat account to invest in an ETF and execute buying or selling transactions.

Real-time pricing is what makes ETF different from mutual funds. ETFs are exactly like mutual funds, but their market price remains volatile just like stocks. However, these prices could differ from its NAV.