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 2,50,000 units outstanding. What is the Net Asset Value (NAV) per unit?
NAV per unit is ₹20. Net assets equal total assets of ₹52,00,000 less liabilities of ₹2,00,000, giving ₹50,00,000, which divided by 2,50,000 outstanding units gives ₹20.00. Ignoring liabilities would wrongly give ₹20.80.
- A₹20.80
- B₹20.00Correct
- C₹21.60
- D₹19.20
Explanation
NAV = (Total assets − liabilities) / units = (52,00,000 − 2,00,000) / 2,50,000 = 50,00,000 / 2,50,000 = ₹20.00. Option ₹20.80 ignores liabilities (52,00,000/2,50,000).
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