Clarification -Highest NAV Assurance by some MF’s?

TATA Mutual Fund [APEX], SBI Life, etc and many others offer the highest NAV realized in a market instance over a subscription period. How does the Fund “account”,hence hedge itself when a subscriber redeems/closes when the market is relatively down – ie., from which fund does the Fund adjust such accrued losses to afford such payouts of unsubscribers? Has regulation have any bearing.
Response sought from any practitioners/ working professionals.
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