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Investments in Indian Markets

 
Industry : Asset Management
Functional Area : Performance
Activity: Question posted: 05 25 2008 22:17:06 +0000, 1 answers, 106 views, last activity 07 06 2010 20:18:08 +0000
 
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  Answered by     Sabyasachi Chatterjee, Associate, Motilal Oswal  | 05 25 2008 22:17:58 +0000
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are you meaning to ask how to value the investments of a Real Estate Fund's investments in Mortgages, Listed Real Estate Companies and on going projects of developers while arriving at the NAV of the fund?


If yes, here is my take.

Investments in Equties of rea estate companies would be valued as any regular equity is valued at the end of day for NAV
Mortgages are to be valued as bonds held till maturity and the daily interest accrual to be considred for the NAV.
On going projects of developers may be a challenge. first evaluate if a Mutual Fund can invest in on going projects of developers. I believe there is a limit to which a Fund can invest in on going projects and also there is a defined valuation methodology there in. You can find it in SEBI website.

 
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