NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investment Landscape
Meera bought units at Rs 40 each and received a dividend of Rs 2 per unit during the year. At the end of the year, the NAV was Rs 44. What is her total return for the year, ignoring taxes and costs?
Meera's total return is 15%. She gained Rs 4 per unit in NAV appreciation and received Rs 2 dividend, totalling Rs 6 on an initial Rs 40. Dividing 6 by 40 gives 15%, so both income and capital gain must be counted.
- A10%
- B5%
- C15%Correct
- D12.5%
Explanation
Capital gain = 44 - 40 = Rs 4; income = Rs 2; total gain = Rs 6. Return = 6/40 = 15%. Option 10% ignores the dividend and 5% counts only the dividend.
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