Examples of Portfolio Value in a sentence
Loss in Corporate Bond Holding = Portfolio Value * Change in Interest Rate * Modified Duration Loss in Corporate Bond Holding = Rs. 100 Crs * 0.10% * 6 = (Rs. 60 Lacs) Similarly, Profit on short selling of Interest Rate Futures = Rs. 100 Crs * 0.10% * 6 = Rs. 60 Lacs This allows the fund manager to hedge the portfolio against interest rate movement using Interest Rate Futures.
On the Final Valuation Date, the Final Portfolio Value is at or above the Protection Barrier Value.
Total Portfolio Value of Rs. 32 Lakhs (Each security invested is valued at Rs. 8 Lakh) Current NAV: 32,00,000/10,000 = Rs. 320 Per UnitSuppose Security D is downgraded to below investment grade and consequently the value of the security falls from Rs. 8,00,000 to Rs. 3,00,000 and the AMC decides to segregate the security into a new portfolio.
In this example, no Autocall Redemption Event would occur because the Portfolio Value at each Observation Date is below the Autocall Redemption Value.
In this example, the Final Portfolio Value is greater than or equal to the Protection Barrier Value.