CMA Final · Strategic Financial Management · Mutual Funds
A fund's portfolio is worth Rs 108 crore at market value and it holds other net receivables of Rs 4 crore. Liabilities are Rs 2 crore towards accrued expenses and Rs 10 crore payable for securities purchased. The fund has 5 crore units. What is the NAV per unit?
NAV is Rs 20.00 per unit. Net assets equal investments of 108 crore plus receivables of 4 crore, less accrued expenses of 2 crore and payables for securities of 10 crore, giving 100 crore. Dividing by 5 crore units gives Rs 20.
- ARs 20.00Correct
- BRs 22.40
- CRs 20.40
- DRs 20.80
Explanation
Net assets = 108 + 4 - 2 - 10 = Rs 100 crore. NAV = 100/5 = Rs 20.00. Rs 20.80 ignores the payable for securities purchased (108+4-2=110 gives 22; 108+4-10=102 gives 20.40), so those options each omit one liability.
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