NAV
Navistar International
stock NYSE

Hey there's no need to be hostile; perhaps I did not phrase the question correctly. I was in the market during the SPAC craze of 2021, and I am well aware that most SPACs have the tendency to drop below NAV immediately after merger. I also understand there are ties to Trump Junior and that the company aligns with conservative sentiment, but the ties to Trump Junior were known publicly for a while now. Thus, I believe the market has priced in that information, given that CLBR is already trading at 50% above the floor price of $10. To rephrase my initial question, are there any other speculative catalysts that I missed out which may not be priced in by the market?

This excellent article by Basu sir might help you explain why the NAV's of Gilt funds ,& long duration funds fell after the rate cut instead of going up:
https://www.basunivesh.com/why-gilt-fund-navs-fell-despite-rbis-0-5-rate-cut/
I don't think any further explanation would be required as such.
As for you trying to gain 1-2% extra, I don't see the need for a long duration bond fund. That extra can be gained with a Conservative Hybrid Fund as well which I consider a better replacement for Long duration funds for long term debt allocation.
A quick look at the rolling returns shall explain why.

There’s a lot of opinions. Now I’ll give another.
These funds are used for income. Don’t bother doing the same diligence on these as regular stocks or ETF’s. Good, bad or otherwise, they are different.
If you want all out growth, I personally don’t recommend them. If you want to take a small piece of a portfolio and supercharge your income…absolutely use them.
The NAV decay is a fact of life with them. If you need INCOME then it allows you to leave most of your portfolio in solid stocks and ETF’s over a longer term.
As distribution and NAV declines then you can either put more in or change it up.
These aren’t “growers”, they’re “showers”. The NAV is difficult to grow them because they are selling covered calls essentially. This can always limit growth…trust me. I sell covered calls on pieces of my portfolio and sometimes I get my shares called away. So my upside becomes limited. My “personal NAV” doesn’t grow when that happens.
I call them “showers” because they “show you me the money”. The fund earns income and then distributes it to unit holders.
That’s why when people try to spreadsheet it and think they are putting in say $10k and they fantasize about the math they think in 10 years they will be multi-millionaires. But they forget that these funds are constantly paying, not growing. They want both, they won’t get it.
So when people say “look at total return” they are desperately trying to convince folks that want income that they are wrong. They aren’t necessarily wrong, they have different goals.
So, let’s stop putting people down for investing in particular products. Who cares?
It’s their business!

Is this NAV decay a tax advantage like ROC?

Depends if you want to die rich or die with memories.
Some people sell off at 65 and go into dividends. But what’s the odds you live past 70? Or the odds of you enjoying life with all your medical problems spewing out.
I myself am M28 and have growth dividend stocks. Don’t invest in anything with a negative NAV. Yieldmax’s and other negative NAV-ing covered call ETF’s are trash and should be avoided like the plague in my personal opinion.
I also use margin to take out loans against my stocks to pay off loans early. Paid off my house early with it paying 4% less APY. The interest is calculated daily in my brokerage account and not all at once and paid in the beginning like a bank loan. It’ll be paid off in 5 years now and not another 25. Saving THOUSANDS!
I’ll be debt free by 33 instead of 55-60 like people doing growth only and not selling till their death bed.
If you do dividends right they can make for an early retirement
Btw my dividends pay the interest on the margin and pay it down quite a bit. I also still make my “house payment” to my brokerage account to pay it off faster. Have a % of my weekly paycheck directly deposited to buy more growing dividends to help the snowball grow.
Also put 10% into my work 401k with a 5% match snow balling as well.

Consider not automatically reinvesting the dividends. The NAV is a little weird on SGOV and USFR and such. The average price is basically constant, but it fluctuates up and down due to the current value of the expected dividend. Depending on when you buy the original shares, sometimes your cost basis will be positive, other times negative.
Anyways, if you need to sell the fund mid month, sometimes you can have a very slight loss. If you automatically reinvest dividends the next month it'll trigger a wash sale rule violation. This isn't the end of the world, but it'll cost you another five minutes on your taxes and a momentary freak out when you see the warning banner pop up on your account.
This can be avoided by only selling shares with that have a positive cost basis, but I prefer to just manually place buy orders when I'm confident I won't need the cash in the near future.

So something like BND would have all of these Treasuries, but the interest on that accrues monthly and the interest on SGOV accrues daily which is why the NAV chart is a sawtooth wave — correct?

SGOV buys T-Bills which is like a lower cost MMF. Becauae it's short-term, the NAV price doesn't fluctuate like longer-term treasuries.
Basically, if you want a liquid investment where you can't lose money, you have your choice between HYSA or SGOV/VBIL/USFR. CDs and buying T-Bills directly are other zero volitility investments, but they're not liquid. Longer-term treasuries are either not liquid and the capital price can fluctuate based on interest rates (so you can lose money).

I saw that too. I was like “Damn…. $10K turned into $23K in a little over a year - I’d take that NAV decay at that rate.” Can it hold up long term? We’ll see.
Some other funds that have NAV decay are a bad idea - but if you are looking for quick cash and not long term holds then it might work out. Such investments are still pretty new, so we’ll see how they hold out.

Another Redditor recently showed that once you take into account all the payouts, then the apparent NAV decay, especially if you look at the price charts - then overall performance is actually better than it appears

Might be old fashioned of me but I'm highly wary of high dividend yields unless there's a sound basis behind it. I don't like anything with NAV decay. Just personal taste.

It's enough to retire in many countries in SE Asia. I personally wouldn't choose a high yield etf though unless maybe I was 65+. None of those ETFs have very good track records. The best ones have managed to preserve NAV but have little to zero dividend growth and on top of that you pay ordinary income tax. I am a couple years a away from being able to retire. 450 to 500k is my goal but the yield I am aiming for is more like 2% to 2.5%. Which would still provide enough income to live off in the Philippines. CNQ is the only high yield stock I own. The rest of my profile is growth. APO,BAM,BX,KKR,ARES,OWL,BLK,FRFHF, MSTR,TPL, and SOXQ. I changed my retirement strategy and shifted to more growth and more global exposure. I have friends living on 350 dollars a month in the Philippines so I will use that low cost of living to my advantage. Higher growth lower yield stocks will be painful in the short term but strong in the long term

I am in this camp and went the higher dividend route but not companies, ETFs. It helps pay bills when I have inconsistent income from my business and my long term play is that I can fire off of it.
2 issues with dividend play is that you get taxed on dividends unless its return of capital. Other issue is (at least the higher income ETFs), NAV drops with every payout and if the NAV doesnt recover, you might get less of a payout therefore needing to reinvest a chunk if not all of the dividends.

Hey everyone,
I’ve been hearing words like SIP, mutual funds, ELSS, NAV, CAGR, Bluechip — and I have no clue what any of it means. I used Groww before to trade stocks, but it charged fees, and I honestly didn’t know what I was doing.
Here’s what I do know:
• I want to invest monthly (even just ₹1,000–₹2,000)
• I don’t want to pick individual stocks
• I’m okay waiting 5–10 years
• I don’t want to get screwed with hidden fees or bad choices
So:
• What’s the difference between SIP and mutual fund and all the other stuff?
• Do I pick companies myself? Or is it all handled by the app/fund?
• Should I just pick what’s popular on Groww?
• What’s the simplest, safest option for someone who just wants to build wealth slowly without knowing all the terms?
If you were me — 23, confused, and just starting — what would you do?
Thanks 🙏
I appreciate all real, honest advice — not just YouTube hype.

u/teek22
**I invest in listed Private Equity (PE)**. The "listed" bit means they are listed on a stock exchange, however the vast majority of PE can only be accessed by large institutional investors, although this is gradually changing. In part because firms can no longer rely on institutional investors to fully subscribe to their new fund launches, there are pros/cons to this development for the retail investment market).
I suggest looking at the AIC's (Association of investment Companies) website [Link](https://www.theaic.co.uk/aic/find-compare-investment-companies?sec=PE&sortid=Name&desc=false)
* Note: All these PE funds are Investment Trusts, as such they can trade at a premium/discount to Net Asset Value (NAV) & they can also borrow / gear.
* If you click into a company, it takes you to a page where you can read up about what they focus on, check out their historical performance, see their fact sheets & sometimes external research etc etc
Some of the large PE firms (i.e. not their funds) are now listed, mostly in the US. I personally prefer investing in their funds, rather than the management company itself.

Covered Call ETFs, in my opinion, require a lot of monioring (for problems like NAV erosion) and I wouldn't recommend them for older people. A safer, less risky, place would be UTG which has a long, consistent, and stable history of paying dividends without NAV erosion. UTF is a newer fund but is similar to UTG.

No ETFs:
I moved to individual bond issues before interest rates climbed forcing NAV erosion. It isn't difficult.

Once any fund gives the dividend it loses it's NAV on that day. Eg 100 stock loses 40 cents of nav after paying the dividends

1. SPMO ETF - Best performing growth ETF of the last few years.
2. HOOD - Only individual stock I own right now. I see huge growth for them in the future like owning JPMorgan, Coinbase, SOFI, Visa / Mastercard in one stock.
3. JEPQ ETF - 12% yield with no NAV erosion.
4. BTCI ETF - offers about 25% yield and is the only Bitcoin income ETF that holds actual Bitcoin.
I might start adding Amazon as well

>Credit risk funds invest in lower grade papers and large dips in NAV can be expected.
u/laid_back_1 : I have been investing in MF for 5+ yrs, recently exploring bonds related zones.

This is detailed distribution of DSP Credit risk fund : [https://www.moneycontrol.com/mutual-funds/dsp-credit-risk-fund-direct-plan/portfolio-debt/MDS616](https://www.moneycontrol.com/mutual-funds/dsp-credit-risk-fund-direct-plan/portfolio-debt/MDS616) .. It looks like they have invested mostly around 'A series' rating bonds on top firms.
I just want your view, do you still think this fund can default ? Is something I need to research/consider more to understand better abt a fund.