Blended Training Program – Batch Commenced on 27th August 2020

Assignment – Day 3

Personal Details:

First Name Ambuja Location Btm layout

Last Name GN Zone Banglore

Please answer the following questions after visiting the below mentioned websites and upload this document
on the portal, latest by 22:30 hours today.

My Assignment for Day 3: 29/08/20

Please read the three scenarios carefully and find the net asset value.

Scenario 1:

ABC Company provides a mutual fund to two customers, Mr. Ram and Mr. Prem. Mr. Ram pays Rs.
50,000 and Mr Prem pays Rs. 40,000. The management charges for both accounts are Rs. 500 and Rs.
400. The total number of units within the funds is 8,910.

The net assets of the fund are Rs. 1, 00,000. Find the fund's net asset value.

Solution:

Particulars Mr. Ram’s fund Mr. Prem’s fund

Equity (A) 50000 40000

Expenses (B) 500 400

Net assets (C) [A-B] 49500 39600

NAV

=((50000+40000)-900)+100000)/8910

= 21.22
 Blended Training Program – Batch Commenced on 27th August 2020
Assignment – Day 3

Scenario 2:

Ms. Megha and Mr. Mayank invests Rs. 25,000 and Rs. 20,000 in a ULIPs offered by an insurance
company. The management expenses on these investments are Rs. 500 and Rs. 400 respectively.

The fund manager has created units with a face value of Rs. 10 per unit. Find out the number of units for
each fund. On the next day, the fund’s net value is Rs. Rs. 60,000. Calculate the new NAV of these
accounts.

Solution:

Particulars Ms. Megha’s fund Mr. Mayank’s fund

Equity (A) 25000 20000

Expenses (B) 500 400

Net assets (C) [A-B] 24500 19600

NAV =

=(((25000+20000)-500+400)+ 60000)/4410)

=23.60

Scenario 3:

The asset under management of PQR Company as on 12th March, 2019 is Rs. 11 lakhs. Its management
expenses for the balanced fund are Rs. 1 lakh. Find out the NAV for outstanding 1 lakh units.

NAV

=(1100000-100000)/100000

=10
 Blended Training Program – Batch Commenced on 27th August 2020
Assignment – Day 3

Questions:

Given here are some clues, based on which, you need to identify the financial term to which the clues are
related.

Question 1:

 I am required for every business to begin

 I need a lot of money to exist

 If I am not around, a business cannot expand

Who am I?

Capital

Question 2:

 By investing in me, there can be profits or losses

 There are no guaranteed returns by investing in me

Who am I?

Mutual Fund

Question 3:

 I provide fixed returns in the form of interest

 I deal with borrowers and lenders

 Returns provided by me are on a fixed term basis

Who am I?

____________Bank____________________

Question 4:

Creating a portfolio that includes multiple investments in order to reduce risk is ________Asset
Allocation__________.
 Blended Training Program – Batch Commenced on 27th August 2020
Assignment – Day 3

a. Diversification

b. Asset Allocation

c. Multi-Cap Growth

d. Risk Pooling

Question 5:

Share price of the company includes history of the profits and losses made by the company.

True