The price of the stock was 58% below the NAV / the wide cap of the budget deficit on the small shareholders

According to Tejarat News, it was in May of 2019 that the government, in order to escape from the budget deficit, launched a discount for the capital of small shareholders and the low-income fund. The discount which at first glance was the government setting fire to its own property, and later it became clear, was the fire that the government set on people’s lives and property.

It is good to have a look at the trend of exchangeable funds. 38 days after the end of the subscription of this fund, Dariqam appeared on the board with a 100% growth, and the people of the capital market entered the field of government extravagance from that day. The upward trend continued, people kept investing their capital in the capital market day by day, dreaming of good days.

This process continued until the 20th of August of the same year, and people were still thinking about what to do with the capital obtained from the stock market. But on August 20, the page turned; The market that adds to the capital of newcomers to the stock market every day suddenly became the bane of their capital.

The stock market, which was supposed to be a place to invest in the country’s production, this time turned into a breeding ground for rent-seekers, and the only gain it had was the government’s short-term escape from the budget deficit. But what happened to the trustees of the first government fund?

The ups and downs path of low-income shareholders

Low-income buyers should be divided into three groups; The first group of those who bought Daraikam with a 20% discount at a price of 10 thousand tomans. The second group, the buyers of this fund on the reopening day, and the third group, those who bought this fund at its historical ceiling, at the price of 34 thousand Tomans.

To check the efficiency of the portfolio of these three groups, it is necessary to mention the price of 15 thousand and 700 tomans of the units of this fund on the board. At first glance, maybe those who bought this fund at a discount have made a good profit and their portfolio performance has been better than the other two groups. But it must be said that this group also did not earn as much as it should have.

Because since then, the index has only grown by 50% while the total index has increased by 100% during this period. Therefore, it can be said that ordinary people did not get any profit from this high-profile fund, and only by buying it, they saw that their capital was watered compared to inflation. However, it should be emphasized that the government was able to close its burden by selling these units in advance and compensate part of the 1999 budget deficit.

Net asset value of the fund

Net asset value or abbreviated NAV is a parameter to determine the net value of the assets of a business entity, through which it can be estimated whether the fund in question is worth buying or not.

To check the value of the ETF fund, it is enough to take a look at this fund’s website. According to the website of this fund, it is clear that the statistical price of each share is 248 thousand 555 rials. Therefore, this fund is currently trading around 58% below its intrinsic or real value. It is only because of the failed management system of the Iranian Stock Exchange!

How much profit did you make?

On the other hand, the financial statements give little information about the evolution of this fund compared to last year. So that in 1401, Darikam managed to generate more than two thousand and 918 billion tomans of unrealized profit from holding shares of Bank Mellat, Trade, Export, Amin and Alborz reinsurance. It should be mentioned that the biggest share of this profit was the holding of shares of Bank Mellat with about two thousand and 433 billion tomans.

But in 1400, this issue was the opposite of this story, so that this place resulted in an unrealized loss of two thousand and 731 billion tomans for the poor in 1400.

Also, in the last fiscal year, this fund was able to identify a net profit equal to 3,111 billion tomans. According to the number of 577 million units of this fund, about five thousand and 400 tomans of interest is assigned to each share, which makes the P/E less than three units.

Therefore, it should be said that the arrow causing the current situation has only one side and that is towards the government. The government, which offered this investment fund at a discount in the stock market under any circumstances and added to its bubble value day by day, now cannot provide conditions where it can be traded at least around its intrinsic value.

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