NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Net Asset Value, Total Expense Ratio and Pricing of Units
A scheme's NAV rose from Rs 20.00 to Rs 23.00 over one year with no distributions. What is the absolute return?
The absolute return is 15%. The NAV gain is Rs 3 on an opening NAV of Rs 20, and 3 divided by 20 equals 15%. The return is measured on the opening NAV, not the closing one.
- A13%
- B15%Correct
- C18%
- D12.5%
Explanation
Return = (23 - 20)/20 = 15%. 13% uses 3 divided by 23. Other options use wrong bases or arithmetic.
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