Compute NAV and rate of return for a unit holder who bought a unit at ₹17.60 and received a dividend of ₹2 per unit during the period. Face value of the unit is ₹10. Other details are as under : Market value of funds por

CS Executive · Capital Markets & Securities Laws · PYQS · December 2016
Compute NAV and rate of return for a unit holder who bought a unit at ₹17.60 and received a dividend of ₹2 per unit during the period. Face value of the unit is ₹10. Other details are as under : Market value of funds portfolio: 4,200 (in crore), Size of the scheme: 2,000 (in crore), Accrued income: 100 (in crore), Receivables: 100 (in crore), Accrued expenses: 275 (in crore), Liabilities: 150 (in crore), Number of outstanding units: 200 crore.

Answer & Explanation:

Compute of Net asset value (NAV) and Rate of return NAV = (Market value + Current Asset - Current Liabilities)/No. of units outstanding = (4200 + 100 + 100 - 150 - 275) / 200 units = 3975 / 200 = ₹19.875 Rate of Return = (income earned - amount expended) / initial investment x 100 = (19.875 + 2 - 17.60) / 17.60 x 100 = 4.275 / 17.60 = 24.29%

Topics: Mutual Funds

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic