An investor buy shares in a mutual fund for ₹ 400. At the end of the year, the fund distributes a dividend of ₹ 11.20 and after the distribution the net asset value of a share is ₹ 468.80. What would be the investor's re
CS Executive · Capital Market and Securities Laws · PYQS · December 2023
An investor buy shares in a mutual fund for ₹ 400. At the end of the year, the fund distributes a dividend of ₹ 11.20 and after the distribution the net asset value of a share is ₹ 468.80. What would be the investor's return on the investment ?
Answer & Explanation:
Return on Investment (ROI) = \frac{\text{Net Return}}{\text{Cost of Investment}} Net Return Cost of Investment × 100 = \frac{(\text{₹}468.80+\text{₹}11.20)-\text{₹}400}{\text{₹}400} ( ₹ 468.80 + ₹ 11.20 ) − ₹ 400 ₹ 400 × 100 = \frac{\text{₹}80}{\text{₹}400} ₹ 80 ₹ 400 × 100 Return on Investment = 20%
Topics: Mutual Funds, Investment Analysis
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