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The daily process of valuing every security in a scheme portfolio at its current market price is called
A{'text': 'Mark to Market', 'label': 'A'}
B{'text': 'Portfolio churning', 'label': 'B'}
C{'text': 'Rebalancing', 'label': 'C'}
D{'text': 'Book building', 'label': 'D'}
Answer & Solution
Correct answer: A. {'text': 'Mark to Market', 'label': 'A'}
1. Mark to Market (MTM) values each holding at its current market price.
2. MTM is done daily so the NAV can be published each business day.
3. Portfolio churning refers to how often holdings are turned over, not valuation.
4. Rebalancing changes weights; book building is an issuance mechanism.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 2 "Concept and Role of a Mutual Fund", §2.1.4_
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