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NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Collective Investment Vehicles

A mutual fund scheme has net assets of Rs 520 crore after all liabilities and accrued expenses, and 20 crore units outstanding. What is the NAV per unit?

NAV per unit is net assets divided by units outstanding. Rs 520 crore divided by 20 crore units gives Rs 26 per unit. Net assets already reflect liabilities and accrued expenses, so no further adjustment is needed.

  1. ARs 20
  2. BRs 26Correct
  3. CRs 36
  4. DRs 52

Explanation

NAV = net assets / units outstanding = 520 crore / 20 crore = Rs 26. Rs 52 would result from dividing by 10 crore units, a wrong base. Rs 20 incorrectly inverts the figures.

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