← Back to Glossary
Instruments

Premium/Discount

When a mutual fund trades above (Premium) or below (Discount) its NAV on the stock exchange.

If a fund's NAV is Rs. 10 but it trades at Rs. 11, it's at a 10% premium. If it trades at Rs. 9, it's at a 10% discount. Premium means investors are optimistic; discount means pessimism. It's the market's 'opinion meter' – premium says 'we love it!', discount says 'we're worried!'

Nepali Definition

प्रिमियम/डिस्काउन्ट

जब म्युचुअल फण्ड नेप्सेमा आफ्नो NAV भन्दा माथि (प्रिमियम) वा तल (डिस्काउन्ट) मा कारोबार हुन्छ।

यदि फण्डको NAV १० रुपैयाँ हो तर यो ११ मा कारोबार भयो भने यो १०% प्रिमियममा छ। यदि ९ मा भयो भने १०% डिस्काउन्टमा छ। प्रिमियम भनेको लगानीकर्ता आशावादी छन्; डिस्काउन्ट भनेको निराशा। यो बजारको 'राय मिटर' हो – प्रिमियम भनेको 'हामीले मन परायो!', डिस्काउन्ट भनेको 'हामी चिन्तित छौं!'

Explore more Nepal Stock Market Resources on Nepse.link.