NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Net Asset Value, Total Expense Ratio and Pricing of Units
A scheme has a market value of investments of Rs 520 crore, other assets of Rs 20 crore and liabilities and accrued expenses of Rs 40 crore. It has 25 crore units outstanding. What is the NAV per unit?
The NAV is Rs 20.00 per unit. Net assets equal investments plus other assets minus liabilities, which is 520 plus 20 minus 40, or Rs 500 crore. Dividing by 25 crore units gives Rs 20.
- ARs 20.00Correct
- BRs 20.80
- CRs 21.60
- DRs 22.40
Explanation
Net assets = 520 + 20 - 40 = Rs 500 crore. NAV = 500 / 25 = Rs 20.00. Rs 20.80 ignores other assets and liabilities (uses 520 only), and Rs 21.60 ignores liabilities (540/25).
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