NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Mutual Funds
A mutual fund scheme has net assets of Rs 520 crore before accounting for a liability of Rs 20 crore, which is payable and not yet deducted. The scheme has 25 crore units outstanding. What is the NAV per unit?
The NAV per unit is Rs 20.00. NAV is computed by deducting liabilities from the value of assets, giving Rs 500 crore, and dividing by 25 crore units. Rs 20.80 would wrongly ignore the Rs 20 crore liability.
- ARs 20.00Correct
- BRs 20.80
- CRs 20.40
- DRs 21.60
Explanation
NAV equals (market value of assets minus liabilities) divided by units outstanding. Net assets are 520 - 20 = Rs 500 crore, and 500/25 = Rs 20.00. Rs 20.80 results from ignoring the liability. Rs 20.40 and Rs 21.60 are not derived from the given data.
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