NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Collective Investment Vehicles
A mutual fund unit has an NAV of Rs 40 at the start of a year and Rs 46 at the end, with no dividend paid in between. What is the percentage return for the year?
The return is 15%. The NAV rose from Rs 40 to Rs 46, a gain of Rs 6, and dividing this gain by the opening NAV of Rs 40 gives 15%. No dividend was paid, so nothing else is added.
- A15%Correct
- B13%
- C6%
- D17.5%
Explanation
Return = (46 - 40) / 40 = 6/40 = 15%. Dividing by the ending NAV gives 13.04%, which uses the wrong base. The 6% figure is the rupee gain, not the percentage, and 17.5% is unsupported by the data.
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