NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Net Asset Value, Total Expense Ratio and Pricing of Units
A scheme has net assets of Rs 520 crore before deducting accrued expenses of Rs 20 crore. It has 25 crore units outstanding. What is the NAV per unit?
The NAV is Rs 20.00 per unit. Accrued expenses of Rs 20 crore must be deducted from assets of Rs 520 crore, leaving Rs 500 crore, which is divided by 25 crore units outstanding to get the per-unit net asset value.
- ARs 20.00Correct
- BRs 20.80
- CRs 19.20
- DRs 21.60
Explanation
NAV = (Assets - liabilities and accrued expenses) / units outstanding. Net = 520 - 20 = Rs 500 crore. Dividing by 25 crore units gives Rs 20.00. Rs 20.80 ignores the accrued expenses.
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