CMA Final · Strategic Financial Management · Mutual Funds
Nila Debt Fund holds a portfolio valued at Rs 98,00,000 and accrued expenses payable of Rs 1,00,000. It also has Rs 3,00,000 of cash and receivables. The fund has 10,00,000 units. An investor redeems 20,000 units with an exit load of 1% of NAV. What amount does the investor receive?
Net assets are Rs 98 lakh plus Rs 3 lakh cash less Rs 1 lakh payables, which is Rs 1 crore, so NAV is Rs 10 per unit. Redeeming 20,000 units gives Rs 2,00,000 less a 1% exit load of Rs 2,000, so the investor receives Rs 1,98,000.
- ARs 2,00,000
- BRs 1,98,000Correct
- CRs 1,96,020
- DRs 1,99,000
Explanation
Net assets = 98,00,000 + 3,00,000 - 1,00,000 = 1,00,00,000; NAV = Rs 10.00. Gross redemption = 20,000 x 10 = Rs 2,00,000. Exit load 1% = Rs 2,000, so the investor receives Rs 1,98,000. Rs 2,00,000 ignores the load.
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