NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Mutual Fund Scheme Performance
A scheme's NAV rose from Rs 40.00 to Rs 46.00 over exactly 1 year, and it paid no dividend during the year. What was its absolute return for the year?
The absolute return is 15%. The gain of Rs 6 per unit is divided by the opening NAV of Rs 40, which is the correct base, since return is measured on the amount originally invested.
- A13.04%
- B15.00%Correct
- C16.00%
- D6.00%
Explanation
Absolute return = (46 - 40) / 40 = 6/40 = 15%. The 13.04% figure comes from dividing the gain by the ending NAV (6/46), which is the wrong base. The 16% figure is not derived from the data and is wrong.
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