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 250 crore and 10 crore units outstanding. What is its NAV per unit?
NAV per unit equals net assets divided by units outstanding. Rs 250 crore divided by 10 crore units gives Rs 25 per unit. The other values result from decimal errors, ignoring units, or inverting the division.
- ARs 2.50
- BRs 25.00Correct
- CRs 250.00
- DRs 40.00
Explanation
NAV = net assets / units outstanding = Rs 250 crore / 10 crore units = Rs 25.00. Rs 2.50 comes from misplacing the decimal, Rs 250 ignores the units, and Rs 40 inverts the ratio (10/250).
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