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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Concept and Role of a Mutual Fund

A close-ended scheme of Rs 100 crore is launched with a face value of Rs 10 and an NFO price at face value. The AMC collects Rs 100 crore, and the scheme has no other assets or liabilities at allotment. After one month, the scheme has accrued expenses of Rs 0.40 crore payable, while its investments are valued at Rs 99.80 crore and cash is Rs 0.60 crore. What is the NAV per unit?

The NAV per unit is Rs 10.00. Total assets are Rs 100.40 crore (investments plus cash), and after deducting Rs 0.40 crore of accrued expenses, net assets are Rs 100 crore. Dividing by 10 crore units gives Rs 10.00 per unit.

  1. ARs 9.99Correct
  2. BRs 10.00
  3. CRs 9.94
  4. DRs 10.04

Explanation

Units = 100 crore / 10 = 10 crore. Total assets = 99.80 + 0.60 = 100.40 crore. Net assets = 100.40 - 0.40 = 100.00 crore, so NAV = Rs 10.00... recompute: 100.00/10 = Rs 10.00, which is the key.

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