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

A mutual fund scheme has net assets of Rs 120 crore and 10 crore units outstanding. What is its NAV per unit?

The NAV is Rs 12 per unit. Net asset value per unit is the scheme's net assets of Rs 120 crore divided by the 10 crore units outstanding. The Rs 10 face value is only the initial unit price and does not determine current NAV.

  1. ARs 10.00
  2. BRs 12.00Correct
  3. CRs 14.40
  4. DRs 1.20

Explanation

NAV per unit = net assets / units outstanding = 120 crore / 10 crore = Rs 12. Rs 10 is the typical face value, not the NAV here. Rs 1.20 results from a decimal slip, and Rs 14.40 multiplies instead of dividing sensibly.

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