NAV Calculation Change Update

From 3rd August, Mutual Fund NAV calculation is changing.
❌ Fund manager — unchanged
❌ NAV formula — unchanged
✅ How stock closing prices are determined — changing
Till now:
Closing price = VWAP (Volume Weighted Average Price) of trades in the last 30 minutes
From 3rd August:
Closing price = determined via a Closing Auction Session (CAS)
How CAS works:
1️⃣ Regular trading ends at 3:15 PM
2️⃣ Buy/sell orders collected during the auction window
3️⃣ Matched at one equilibrium price — where max quantity trades
4️⃣ That price = official closing price
📌 Applies to: F&O-eligible stocks only (~220 large/liquid names) in Phase 1. Other stocks continue with the old VWAP method for now.
Why SEBI is doing this:
Better price discovery • Improved execution for large institutional orders • Lower tracking error for index funds & ETFs

Bottom line for us: This is a market plumbing upgrade, not a strategy change. Your NAV will still reflect the true value of the fund’s holdings — just measured more precisely.

Regards,

Fund Wallet

Fund Wallet being a AMFI registered Distributor of Mutual funds thought of updating this important change. This is not an recommendation to invest in Mutual Funds.