NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Mutual Funds
A mutual fund has net assets of Rs 520 crore before accounting for the day's expenses. Accrued expenses payable are Rs 20 crore, and the fund has 25 crore units outstanding. What is the NAV per unit? (Net assets before expenses are the total market value of assets with no other liabilities.)
The NAV is Rs 20.00 per unit. NAV equals market value of assets less liabilities, divided by units outstanding. Subtracting Rs 20 crore of accrued expenses from Rs 520 crore gives Rs 500 crore, and dividing by 25 crore units gives Rs 20.
- ARs 20.80
- BRs 20.00Correct
- CRs 21.60
- DRs 19.20
Explanation
NAV = (Assets - Liabilities) / Units = (520 - 20) / 25 = 500 / 25 = Rs 20.00. Rs 20.80 ignores the liabilities. Rs 19.20 subtracts the expenses twice.
Did you get it right without looking?
One question tells you little. A timed set on Mutual Funds shows your real accuracy, how long you take and where you lose marks.
More Mutual Funds questions
- Mr. Kapoor, aged 35, has a high risk appetite, a 15-year horizon and wishes to invest regularly each month in equity funds to smooth out pur…
- Mr. Iyer invests Rs 1,00,000 in a mutual fund scheme with NAV of Rs 20.00 per unit and no entry load. After one year the NAV is Rs 23.00 and…
- Mr. Arvind Menon, aged 58, wants regular monthly cash flow, has a low risk appetite and a three-year horizon. He asks whether a systematic w…
- Mr. Iyer invested Rs 1,00,000 in a fund. After year 1 the value was Rs 1,20,000 and after year 2 it was Rs 1,08,000, with no interim cash fl…
- Mr. Rohit, aged 40, has a moderate risk appetite. A scheme returned 14% in a year with a standard deviation of 10% and a beta of 1.25. The r…
- Ms. Nair, aged 30, wants to invest a fixed Rs 10,000 every month in an equity scheme for 10 years, regardless of market level. Which feature…