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AMFI Mutual Fund Regulations and Operations
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Mutual funds have to value their investments
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A
on a mark-to-market basis
💡 Explanation:
Mutual funds in India must value their investments on a mark-to-market basis as per SEBI regulations. This means investments are valued at their current market price rather than purchase price or book value. Mark-to-market valuation ensures that the NAV reflects the true current value of the fund's holdings. Purchase price and book value do not account for market fluctuations.