CMA Final · Strategic Financial Management · Mutual Funds
A mutual fund scheme has total assets of ₹52,00,000 and external liabilities of ₹2,00,000. It has 4,00,000 units outstanding. What is the Net Asset Value (NAV) per unit?
NAV per unit is net assets divided by units outstanding. Net assets are 52,00,000 minus 2,00,000 liabilities, giving 50,00,000. Dividing by 4,00,000 units gives ₹12.50. Ignoring liabilities would wrongly give ₹13.00.
- A₹12.50Correct
- B₹13.00
- C₹12.00
- D₹13.50
Explanation
NAV = (Total assets − external liabilities) / units = (52,00,000 − 2,00,000) / 4,00,000 = 50,00,000 / 4,00,000 = ₹12.50. Option ₹13.00 ignores liabilities (52,00,000/4,00,000).
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