NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Net Asset Value, Total Expense Ratio and Pricing of Units
A scheme begins the day with net assets of Rs 500 crore and 25 crore units. During the day, its portfolio gains Rs 10 crore in market value, and it accrues expenses of Rs 0.5 crore for the day. No units are issued or redeemed. What is the closing NAV per unit?
The closing NAV is Rs 20.38. Net assets rise from Rs 500 crore by the Rs 10 crore gain and fall by Rs 0.5 crore of accrued expenses, giving Rs 509.5 crore. Dividing by 25 crore units gives Rs 20.38 per unit.
- ARs 20.00
- BRs 20.38Correct
- CRs 20.40
- DRs 20.42
Explanation
Opening NAV = 500/25 = Rs 20. Closing net assets = 500 + 10 - 0.5 = Rs 509.5 crore. NAV = 509.5/25 = Rs 20.38. Rs 20.40 ignores the expense accrual, and Rs 20.42 adds the expense instead of deducting it.
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