Two pricing mechanisms, two very different experiences. Knowing which is which changes how you read the app.
Ama’s Monday morning
Ama tops up her wallet and subscribes to GHS 500 of NFIF at 9 AM on a Monday. She expects to see a unit price immediately. Instead, the app tells her the price will be struck at the end of the day.
That is NAV at work.
NFIF is a mutual fund. At the close of every business day, NIMED’s fund managers tally up everything the fund owns, from cash to bonds to short-term instruments, and divide by the number of units outstanding. The result is the Net Asset Value per unit. One price, struck once, the same for every person who subscribed that day.
Ama’s GHS 500 buys units at Monday’s end-of-day NAV. So does everyone else who subscribed that Monday, whether they clicked at 9 AM or 2 PM.
Kojo’s Monday morning
Kojo places GHS 500 into GCB shares at 11 AM the same Monday. The Trade screen shows GHS 4.20 per share. He taps Buy.
By the time his order reaches the exchange, the price is GHS 4.22. Someone else’s larger buy order nudged it. Kojo’s shares fill at 4.22, not 4.20. A small difference, but real.
That is live market pricing at work.
Why the difference matters
NAV is calm. One price, end of day, no surprises. Everyone trading that day gets the same deal. It suits money you are not watching minute by minute.
Market pricing is alive. It reflects what buyers and sellers agree to in real time. Small slippage between the price you see and the price you fill at is normal, especially on stocks that don’t trade very often. It suits investors who want a shot at day-to-day opportunities and can accept a bit of uncertainty on the exact fill.
Which one is better
Neither. They are different tools. A diversified portfolio often holds both. Funds for the calm bedrock. Equities for the growth engine. Understanding how each is priced helps you pick which to use for which goal.
