Nirav attained the age of 18 years recently. He understands the concept of compounded return, thus started investing in a Systematic Investment Plan (SIP) from his monthly pocket money for an amount of ₹ 5,000 per month
CS Executive · Capital Market and Securities Laws · PYQS · June 2024
Nirav attained the age of 18 years recently. He understands the concept of compounded return, thus started investing in a Systematic Investment Plan (SIP) from his monthly pocket money for an amount of ₹ 5,000 per month at the beginning of every month. The NAV of the scheme at the beginning of each month is given as below: Month 1: ₹ 10 Month 2: ₹ 10.50 Month 3: ₹ 10.80 Month 4: ₹ 11.00 Month 5: ₹ 11.30 The NAV at the end of the 5th month is ₹ 12.10 What will be the value of holding of Nirav the end of 5th month under this SIP plan?
Answer & Explanation:
Calculation of total number of units with Nirav at the end of 5th Month: Month (1) Amount Invested (₹) (2) NAV (₹) (3) No. of Units (2/3) 1 5,000 10 500 2 5,000 10.50 476.19 3 5,000 10.80 462.96 4 5,000 11.00 454.55 5 5,000 11.30 442.48 Total 2336.18 Present value of holding = No of units x closing NAV = 2336.18 x ₹12.10 = ₹28,267.78
Topics: Mutual Funds
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