The day after the record date is known as ex-date or / ex-dividend. On ex-date, the NAV (Net Asset Value) the scheme is adjusted according to the dividend declared.
If the NAV on the record date i.e., May 14 is Rs. 16, the price will fall by Rs. 2 (excluding dividend distribution tax) to Rs. 14 (Rs. 16 minus Rs. 2) on May 15 .
Other things remaining equal, NAV . should fall on ex-date as dividend distribution leads to outflow of money.
No comments:
Post a Comment