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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Net Asset Value, Total Expense Ratio and Pricing of Units

A scheme's total assets are Rs 530 crore, including accrued income. Its liabilities and accrued expenses total Rs 30 crore. It has 20 crore units. What is the NAV per unit?

NAV is Rs 25.00 per unit. Net assets equal total assets of Rs 530 crore minus liabilities of Rs 30 crore, giving Rs 500 crore, which divided by 20 crore units yields Rs 25. Ignoring liabilities would wrongly give Rs 26.50.

  1. ARs 26.50
  2. BRs 28.00
  3. CRs 25.00Correct
  4. DRs 24.00

Explanation

Net assets = 530 - 30 = Rs 500 crore. NAV = 500 / 20 = Rs 25.00. Rs 26.50 ignores liabilities (530/20), which is the key mistake. The other options have no valid derivation.

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