Skip to content

NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Mutual Fund Scheme Performance

A mutual fund scheme's NAV rose from Rs 40.00 to Rs 46.00 over exactly 9 months, with no dividend paid. What is the absolute return for the period?

The absolute return is 15%. It is computed as the change in NAV, Rs 6, divided by the opening NAV of Rs 40. Annualising or dividing by the ending NAV would give different and incorrect figures for the period.

  1. A13.04%
  2. B15.00%Correct
  3. C20.00%
  4. D6.00%

Explanation

Absolute return = (46 - 40) / 40 = 6/40 = 15%. Option 13.04% wrongly divides the gain by the ending NAV. Option 20% annualises the return, which was not asked. Option 6.00% is the rupee gain, not a percentage.

Did you get it right without looking?

One question tells you little. A timed set on Mutual Fund Scheme Performance shows your real accuracy, how long you take and where you lose marks.

Practise Mutual Fund Scheme PerformanceFree diagnostic mock

More Mutual Fund Scheme Performance questions