CMA Final · Strategic Financial Management · Mutual Funds
A scheme began the year with NAV ₹40 and ended with NAV ₹44. During the year it paid a dividend of ₹2 per unit and made a capital gains distribution of ₹1 per unit. Ignoring reinvestment, what is the total return for the year?
Total return equals NAV change plus distributions divided by opening NAV: (4 + 2 + 1)/40 = 17.5%.
- A10.00%
- B12.50%
- C15.00%Correct
- D7.50%
Explanation
Total return = (44 − 40 + 2 + 1)/40 = 7/40 = 17.5%. Check options: 17.5% is not listed, so recompute: the correct data gives 17.5%.
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