What will be Annual Yield of an Investor who has subscribed 1000 units at the time of launching of Scheme ?
CS Professional · Capital Commodity and Money Market · PYQS · June 2019
What will be Annual Yield of an Investor who has subscribed 1000 units at the time of launching of Scheme ?
Answer & Explanation:
Calculation of Annual Yield for an Investor: An investor subscribed 1000 units at the time of launching the scheme. Issue Price per unit: ₹10 Number of units subscribed: 1000 units Maturity Period: 3 years 1. Amount Invested by the Investor: Amount Invested = Number of units * Issue Price per unit Amount Invested = 1000 units * ₹10/unit = ₹10,000 2. Amount Realized by the Investor at Redemption: NAV per unit at redemption = ₹13.00 (as calculated in 2(c)(i)) Amount Realized = Number of units * NAV per unit Amount Realized = 1000 units * ₹13.00/unit = ₹13,000 3. Total Gain for the Investor: Gain = Amount Realized - Amount Invested Gain = ₹13,000 - ₹10,000 = ₹3,000 4. Calculate Annualized Yield: Annualized Yield = (Total Gain / Amount Invested) * (1 / Period in years) * 100 Annualized Yield = (₹3,000 / ₹10,000) * (1 / 3) * 100 Annualized Yield = 0.30 * (1/3) * 100 Annualized Yield = 0.10 * 100 = 10% Therefore, the Annual Yield of an Investor who subscribed 1000 units at the time of launching of the Scheme is 10% .
Topics: Capital Market
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