CMA Final · Strategic Financial Management · Mutual Funds
A fund's NAV rose from ₹50 to ₹57 in a year with a ₹3 dividend paid per unit. Entry load and exit load are nil. What is the total return for the year?
The total return is 20%. Capital appreciation is ₹7 (57 minus 50) and the dividend is ₹3, so total gain is ₹10 on an opening NAV of ₹50. Ten divided by fifty equals 20%. Counting only appreciation gives 14%.
- A14%
- B20%Correct
- C6%
- D17%
Explanation
Return = (57 - 50 + 3)/50 = 10/50 = 20%. Counting only capital gain gives 14%; adding dividend yield only partially is wrong.
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