A very preliminary example on how to calculate the NAV. 🌐 Elevate your financial expertise! Explore our Fund Accounting Courses, insightful blog posts, and more on our website. Dive in now! 💼✨ thefundaccount...
Hi... thank you very much for the effort to make the concept clear ....here i have one question if we are having x date for security,then the price of the security also will decrease by .4 .... otherwise the dividend distribution will impact nav..... again thanking you for the hardwork to explain the topic so well.
Yes you are right, no Ex-date the price of the security goes down, that how the NAV of the fund will not impact the dividend Corporate action. Keep watching.
Hi Ma'am, thank you for this great video. I have got a slightly different NAV figure and would like your kind advice regarding same. The accounting double entry i've done for the dividend is basically Dr Receivables account and Credit Dividend Income account, which I believe does impact the retained earnings (Liability) on the balance sheet of the Fund. By doing so, the NAV i've calculated = 15.902. I shall really appreciate your kind advice if on the liability side we should have recorded Rs40 as well. Many thanks
Hello Ma’am Thank you so much for knowledge sharing and your videos are very helpful to understand Fund Accounting concepts My request is, could you please make a video on Accrual concept with few examples Thank you 😊
Thank you. Unfortunately there is no book available currently on fund accounting. Hope my videos will help you to understand the concepts. Keep watching.
Hi. Thank you for your question. In the example provided in this video, Fund XYZ holds 100 shares of Security A & Security B that will create the portfolio of the fund. The shares Outstanding also can be referred as "Unit outstanding" is the Number of Units of the fund XYZ has been purchased by investor. The 1000 units outstanding is related to unit deals/ subscriptions- redemptions. Hope your doubt is cleared. Keep watching.
This Video was very understandable and explanatory. I would like to thank you for your willingness to help us understanding concepts about economics and accounting studies! Some investment advisory firms concurrently manage different types of investment products such as: (1) Mutual Funds, (2) Hedge Funds and (3) Private Funds. Favor: Could you make a video about the different types of funds available in the finance market?
I had created a video on different types of mutual funds: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-zg48AbwXOfI.htmlsi=KXxusOr0q9PyZ0n0 I can still create some more videos on the same. Keep watching.
For a Fund in Fund accounting Assets and Liability will not always net off. You will have Total Net assets which will be computed based on Asset-Liability. Hope that answer your question. Keep watching.
In any industry liability has two parts one is other liability and 2nd one is capital invested by investor so once we calculate net asset is total asset less outside liability equal to NA
Hi mam...great video want to know 1) what abt divident of security B 2) how can we calculate outstanding share 3) what if any trade happened 4) what does mean by security...is it particular stock or what
Hello. 1. In the example given Security B is not going Ex-D For that day. But the treatment would have been same like security A, the income component would have increased. 2. Outstanding shares or units depends on the capital activity of the fund. It will be net of subscription and redemption for the day. In the example , there was no capital activity for the day, hence no change in outstanding units. 3. I have created a video on Realised & Unrealised gain/loss and It’s impact on NAV, that will help you to clear your doubt. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-qR7hohRf7QY.html 4. Security means the particular stock in the funds. Multiple stock holding will create the portfolio. Keep watching.
How do you decided 1000 outstanding share madam? It can be anything? Or it should be related to investment? Because as per your explanation outstanding should be 200 only ..so please clarify madam... Thank you madam
1000 Outstanding units- this is the denominator of the NAV. Also this is the example I have taken to explain how to calculate NAV. 200 Shares will be the Security holding of the fund, which will be constituting the numerator of the NAV. Keep watching.
Sure. I have created video on unrealised/ realised gain loss which cover the trade aspect in the fund. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-qR7hohRf7QY.html
Thanks for nice information. Request you to guide on following questions: 1. What if the new investment comes in of another Rs.1 Lakh, what will be new size of unit instead of 10,000. 2. What about net profit. 3. How income tax will be treated on Capital gain
In case there is new Investment, based on the current NAV= total investment/ current NAV will be the number of unit outstanding will be issued to the investor and same will be add to fund's shares outstanding. Net profit will be based on the income and realized gain the fund made in a year. Capital gain tax is not covered in this example.
Ex is Ex-dividend date in dividend payment. Please refer to my video on Dividend important dates where you will get more understanding on Ex-date. Keep watching. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Fccc4E12JwE.htmlsi=FQxZxAeCak8gL-E-
Distribution rate and NAV is not same. Distribution rate is based on the distributable income of the fund has on quarter end or year end divided by the Number of unit outstanding. Hope that answer your question.
@user-pl8pm7tn7r we derive at the distributed income based on the accumulated income in a year/ quarter. Also we receive instruction out the total income how much will be distributed.
Hi Mam, if dividend is considered on ex date then my price of the security A also will get adjusted to the dividend right so MV of A will be 8960 and dividend in the account will be 40 right? Correct me if I am wrong . Thanks
I am taking example on 18.06.2022 the dividend and price, the price movement what you are referring will be from prior day to current day. So the price drop will be from 17.06.2022 to 18.06.2022.
The 1000 outstanding shares are derived by the investor , so there can be one or multiple investor invested money in this mutual fund. The fund has issues units to them, that is the number of share outstanding.
@@TheFundAccountant I didnot get that..The shares outstanding should be 200,right? shares outstanding are the shares currently held by investors i believe.This is creating confusion for me in this video
@@jismongeorge3406 200 share for security A and security B , that is held by the Fund. What I mentioned about unit outstanding 1000 units that is the unit of the Fund held by investor. We get share outstanding or unit outstanding information from transfer agency. The 200 shares what you are referring is the number of security in the Fund.
I have created separate videos on Cash and Position reconciliation, that will help you to understand unit and trade break. Please find the links below. Keep watching. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-HuMT8inUjJs.html ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-I5NuvmTP-E4.html
