NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Net Asset Value, Total Expense Ratio and Pricing of Units
A scheme has total market value of investments of Rs 520 crore, other assets of Rs 8 crore and total liabilities and accrued expenses of Rs 4 crore. It has 50 crore units outstanding. What is the NAV per unit?
The NAV is Rs 10.48 per unit. Net assets equal investments plus other assets minus liabilities, which is 520 plus 8 minus 4, or Rs 524 crore. Dividing by 50 crore units gives Rs 10.48.
- ARs 10.40
- BRs 10.48
- CRs 10.56Correct
- DRs 10.32
Explanation
NAV = (Market value of investments + other assets - liabilities) / units = (520 + 8 - 4) / 50 = 524 / 50 = Rs 10.48. Check: 10.48 x 50 = 524. Rs 10.56 results from adding liabilities instead of deducting (532/50 is 10.64, not matching), so wait: correct key is Rs 10.48.
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