NAV = (Net Assets- [Liabilitie

Q1 Assume that total units outstanding in a closed ended mut

488.5

Q3

Suppose you invest in two mutual fund schemes, X and Y. Scheme X has a NAV

Current NAV
Amount of Investment
Return
No. of units

NAV post adding return

 Current value of Investment

Q4
You want to invest Rs. 1,00,000 and total ex

Total Expenses 200

Total Invested Am 99800
NAV 120
No. of Units 831.666666666667

Particulars Amount (Rs)

Securities 500,000 A

Cash and cash 300,000 A

equivalent
Receivables 200,000 A

Accrued Interest 50,000 A

Short-term 200,000 L

liabilities
Long-term 150,000 L

liabilities
Accrued Expenses 100,000 L

Total No. of Units 1,000

Outstanding
 Net Asset Value (NAV)

(Net Assets- [Liabilities+ Expenses])/ No. of Outstanding Units

g in a closed ended mutual fund are 10,00,000 with a market value of investment at Rs. 48,90,0

488500000
1000000
488.5

What is More Relevant: NAV of Mutual Fund or Performance

Y. Scheme X has a NAV of Rs 10 and Scheme Y has a NAV of Rs 50. You make an investment of R
Scheme is performing better?

Scheme X Scheme Y
10 50
100000 100000

10,000 2000

11 55
 No of units * NAV

1,00,000 and total expense ratio os 0.20%. If NAV is 120. Calculate the number of un

Compute NAV?

Assets 1,050,000
450,000
Liabilities

600
NAV

#NAME? 0
ment at Rs. 48,90,00,000. The total liabilities of the fund are Rs. 5,00,000. Compute the NAV.

d or Performance of Fund?
e an investment of Rs 1 lakh in both schemes.Now suppose both schemes give a return of 10% afte
etter?

1
he number of units alloted
ompute the NAV.

a return of 10% after a month.Which

Calculation of Absolute Return in Mutual Fund

Q If you have purchased it at Rs.11

Q Amount Invested by Mr XYZ is Rs. 5,00,000

TER 0.25%
NAV (at the time of purchase)
NAV (at the time of sale)

Total Amount 500000

TER 0.25%
Amount After Deduction o 498750
No. of Units 9068.18181818182
NAV (Purchased) 55
NAV (Sale) 75
Absolute Growth Rate 36.3636363636364
Current value of Investme 680113.636363636

Calculation of Compound Annual Growth Rate (CAGR)

The purchase NAV of yo

Calculation of Entry and Exit Load

Suppose an investor invested Rs. 30,000 in a mutual fund scheme in January 20

val

Total Expense ratio and Investor returns

Mr X invested INR 5,00,000 last

ave purchased it at Rs.11 per unit and after 3 years, if NAV appreciates to Rs

Current NAV 15
Initial NAV 11
36.3636363636364

0,000 50
70
Rs. 55 20/50
Rs. 75 40

1250

The purchase NAV of your MF is Rs.15 per unit. After two years NAV rises
 NAV Ending value 25
NAV Beginning Value 15
Number of Years 2

1.290994
0.290994
29.09

utual fund scheme in January 2017. The plan has an exit load of 1% if redeemed before 1 year. T
value of NAV at redemption is Rs. 90. Compute the exit load and Fin

2017 Total Amount Invested

Exit Load (before 1 Year)
NAV
NAV at Redemption

No. of Units
Sale Proceeds

vested INR 5,00,000 last year in XYZ Equity Fund. The TER for the fund is 2%

2015 1000
 2016 950
2017 1200
2018 1100
2019 1500
2020 1600

Absolute Growth Rate 1600-1000/1000

CAGR 1.0814837471202
0.081483747120199
8.1483747120199
V appreciates to Rs. 15 per unit. What is the absolute Return?

170
200
30
0.176471

wo years NAV rises to Rs.25.Compute CAGR after 2 years

eemed before 1 year. The NAV is Rs. 100 at the time of purchase. If investor reddem the units a
ute the exit load and Final Redemption value

R for the fund is 2%. What will be the total amount invested?
turn?

2017
2018
2019
2020
2021

Absolute Return
CAGR

ars
nvestor reddem the units after four months and the

ed?
 Computation of Holding Period R

Holding period return is thus the total return received from holding

generally expressed as

Q What is the HPR for an investor, who bought a stock a year ago a

Which investment performed better: ETF X, which was held for three ye

Q from $200 to $320 and ge

ETF X B
Number of Years (n) 3 4
Initial Value $100 $200
Sale Value $150 $320
Distribution (Income) $5 $10
Holding period rate of return

[5+ (150-100)]/100
Holding Period Rate of Return

ed from holding an asset or portfolio of assets over a specified period of time

ally expressed as a percentage.

stock a year ago at $50 and received $5 in dividends over the year, if the stock is now t

s held for three years and appreciated from $100 to $150, providing $5 in distributions, o
00 to $320 and generated $10 in distributions over four years?
urn
ed period of time,

if the stock is now trading at $60?

$5 in distributions, or ETF B, which went

 If at the close of trading, a mutual fund has $8,000,000 worth of assets, $20
Q

Q A scheme has 50 cr units issued with a face va

Solutions (a) 500
(b) 618
(c) 630.36

Q Suppose 100 ETF Units = 1 Nifty. In that case, if the Nifty is at 4,800, then

An Investor buys one unit of a fund at an NAV of Rs. 20. He receives a dividend of Rs. 3 wh
Q Rs. 22. Total Return is

Income 3
Initial Value 20
Sale Value 22

[3+ (22-20)]/20
orth of assets, $200,000 of cash, and $500,000 of liabilities. The fund has 350,000 shares out
calculation?

d with a face value of Rs. 10. Its NAV is Rs. 12.36. Its AUM in Rs. Cr is (Entry Lo

ty is at 4,800, then the intrinsic value of each ETF Unit is Rs. 

dividend of Rs. 3 when the NAV is Rs. 21. The unit is redeemed at an NAV of
Total Return is
s 350,000 shares outstanding. What is the mutual fund net asset value

Rs. Cr is (Entry Load 2%)

 There are two types of  Capital Gains on Debt Mutual funds: Long Term a

MR. Arun purchased Debt Mutual Fund of 7000 units at Rs. 23 i

Q th
Compute I

No. of Units 7000 ICOA= Purchase V

NAV Rs. 23
FY 2012-13

Sold NAV Rs. 36 ICOA=161000*

FY 2019-20

LTCG
 LTCG
Capital Gain

Mr. Varun invested Rs. 5 lakhs in a Debt Mutual Fund in the year 2015-
Q investment by Mr. Varun is 3 lakh.
Compute I

ICOA= Purchase V

FY 2015-16
Invested Amount 5,00,000
Sold ICOA=500000*(CII 2
FY 2019-20
Sale Amount 8,00,000
LTCG

LTCG
Capital Gain

 Mr. Ram purchased Debt Mutual Fund of 5000 units at Rs. 18 in the Fina
Q
Compute I
 INDEXATION
funds: Long Term and short term capital gain. Any asset held for more than 36 months is
less than 12 months is short term capital gain. 

0 units at Rs. 23 in the Financial Year 2012-13 and later sold it at Rs. 36 in the F
than 36 months the same qualifies for indexation benefit.
Compute Indexed Cost of Acquisition (ICOA), Tax Benefit as a result of Indexati

ICOA= Purchase Value* (CII of the sale year/ CII of the purchase year)

Purchase Value no of uts* NAV(Purchase)

161000
ICOA=161000* (289/200)
232645

No. of uts*NAV (sale)- No. of Uts* NAV (Purchase)

 (7000*36)-(7000*23)
7000*36-161000
91000
91000*10% 9100
apital Gain 91000-9100

d in the year 2015-16. The value of the fund now stands at Rs. 8 lakh in the year 2019

Compute Indexed Cost of Acquisition (ICOA), Tax Benefit as a result of Indexati

ICOA= Purchase Value* (CII of the sale year/ CII of the purchase year)

Purchase Value no of uts* NAV(Purchase)

OA=500000*(CII 2019-20/ CII 2015-16)

568897.6377953

No. of uts*NAV (sale)- No. of Uts* NAV (Purchase)

8,00,000-5,00,000
3,00,000

3,00,000* 20% 60,000

apital Gain

t Rs. 18 in the Financial Year 2012-13 and later sold it at Rs. 27 in the Financial Year 2018
qualifies for indexation benefit.
Compute Indexed Cost of Acquisition (ICOA), Tax Benefit as a result of Indexati
an 36 months is a long term capital gain whereas any asset held for

Rs. 36 in the Financial Year 2019-2020. As the units were held for more
n benefit.
result of Indexation

) Indexation (LTCG)

Sale Value 7000*36 252000

Less ICOA 232645
LTCG 19355

LTCG 19355*10%
e) 1935.5
 Capital Gain

in the year 2019-2020.  The long term capital gain earned on the

result of Indexation

) Indexation (LTCG)

Sale Value 800000

Less ICOA 568897.637795
LTCG 231102.362205

LTCG 46220.4724409
e)
Capital Gain

nancial Year 2018-2019. As the units were held for more than 36 months the same

result of Indexation
d for more
nths the same