The Market–NAV Gap: Evidence from Closed-End Mutual Funds in Bangladesh
Author (s)
Rafia Tasnim
Abstract
This study examines the factors influencing the discount or premium in the market prices of closed-end mutual funds (CEMFs) listed on the Dhaka Stock Exchange (DSE). The study examines the impact of dividend payout ratio, management expenses, fund size, fund age, liquidity, market capitalization, and earnings per share on the deviation of market price from net asset values (NAV) based on annual data from 16 selected CEMFs from July 2011 to June 2025. The findings indicate that larger and older funds are associated with higher discounts, whereas greater liquidity is associated with lower discounts. When the additional fund-specific factors are included, the dividend payout ratio, fund size, and earnings per share are positively associated with discount rates, while liquidity and market capitalization are negatively associated with discount rates. There is not a consistent relationship between management expense and discount, and the age of the fund. The analysis also shows that there is significant variation between fund size and fund type, with larger and privately-owned funds being affected by more factors than smaller and public sector funds. Overall, liquidity, market capitalization, and fund size are the most consistent factors correlated with CEMF pricing deviations. The findings have implications for investors, fund managers, and regulators to enhance the efficiency of pricing and improve the development of the closed-end mutual fund market in Bangladesh.
Keywords: Closed-End Mutual Funds, Discount/Premium, Net Asset Value, Market Capitalization, Dhaka Stock Exchange.
| Title: | The Market–NAV Gap: Evidence from Closed-End Mutual Funds in Bangladesh |
|---|---|
| Author: | Rafia Tasnim |
| Journal Name: | International Journal of Science and Business |
| Website: | ijsab.com |
| ISSN: | ISSN 2520-4750 (Online), ISSN 2521-3040 (Print) |
| DOI: | https://doi.org/10.58970/IJSB.2721 |
| Media: | Online |
| Volume: | 54 |
| Issue: | 1 |
| Issue publication (Year): | 2026 |
| Acceptance Date: | 25/09/2026 |
| Date of Publication: | 27/09/2026 |
| PDF URL: | http://ijsab.com/wp-content/uploads/2721.pdf |
| Free download: | Available |
| Page: | 100-111 |
| First Page: | 100 |
| Last Page: | 111 |
| Paper Type: | Research Paper |
| Current Status: | Published |
Cite This Article:
Tasnim, R. (2026). The Market–NAV Gap: Evidence from Closed-End Mutual Funds in Bangladesh, International Journal of Science and Business, 54(1), 100-111. https://doi.org/10.58970/IJSB.2721
About Author (s)
Rafia Tasnim, Independent Researcher, Dhaka, Bangladesh.
DOI: https://doi.org/10.58970/IJSB.2721
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