NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Collective Investment Vehicles
An investor buys 200 units of a gold ETF at ₹60 per unit and sells them after a year at ₹69 per unit. Ignoring costs and taxes, what is the percentage return?
The return is 15%. The gain per unit is ₹9 (₹69 minus ₹60), and dividing by the purchase price of ₹60 gives 15%. The base for return must be the cost, not the selling price.
- A15%Correct
- B9%
- C13%
- D18%
Explanation
Gain per unit = 69 - 60 = ₹9. Return = 9/60 = 15%. Dividing by the selling price gives 13%, which is the wrong base. Using the absolute gain of ₹9 as a percentage is also wrong.
Did you get it right without looking?
One question tells you little. A timed set on Collective Investment Vehicles shows your real accuracy, how long you take and where you lose marks.
More Collective Investment Vehicles questions
- Which of the following best describes a feature of an open-ended mutual fund scheme in India?
- An investor puts Rs 5,00,000 in a unit of a collective investment vehicle whose NAV rises from Rs 40.00 to Rs 46.00 over one year, with no d…
- A mutual fund scheme has total net assets of ₹520 crore and 40 crore units outstanding. What is its NAV per unit?
- Which statement about Alternative Investment Funds (AIFs) in India is correct?
- Which of the following is a key difference between a mutual fund and a PMS for a distributor explaining them to a client?
- Under SEBI's framework, which statement about Infrastructure Investment Trusts (InvITs) is correct?