The composition of the Fingroup Fund portfolio is as follows:

Stock Shares Price ($)

A 200,000 35
B 300,000 40
C 400,000 20
D 600,000 25
The fund has not borrowed any funds but its accrued management fee with a portfolio
manager currently totals $30,000. There are 4 million units outstanding. What is the Net
Asset Value (NAV) of the fund?

Soln
Stock Shares Price ($) Market Value of Assets
A 200,000 35 7,000,000 =B13*C13
B 300,000 40 12,000,000 =B14*C14
C 400,000 20 8,000,000 =B15*C15
D 600,000 25 15,000,000 =B16*C16
Total Market Value of Assets 42,000,000 =SUM(D13:D16)

Step 1 - Market Value of Assets 42,000,000 =D17

Step 2 - Liabilities 30,000 Given
Step 3 - Total Units outstanding 4,000,000 Given

Step 4 - NAV = (MV of Assets -

Liabilities)/Units 10.49 =(D19-D20)/D21
=SUM(D13:D16)

=(D19-D20)/D21
A Closed-End Fund has a portfolio currently worth $200mln. It has liabilities of
$3mln and 5 million units outstanding. Determine the NAV of this fund. If the
fund sells for $36 per unit, what is the percentage premium or discount that
will appear in the listings of the financial pages? Assume trading at $42 what is
your answer then?

MV of Assets 200 Given

Liabilities 3 Given
Units 5 Given

NAV 39.40 =(B7-B8)/B9

NAV - Actual / as per Valuation 39.40 =B11

Trading / Market price of NAV 36.00 Given
INR Premium / (Discount) -3.40 =B14-B13
% Premium / (Discount) -8.63% =B15/B13

NAV - Actual / as per Valuation 39.40 =B11

Trading / Market price of NAV 42.00 Given
% Premium / (Discount) 6.60% =(B19-B18)/B18
The Equity Fund sells Class A units with a front-end load of 4% and Class B units with an back-end load fees (for Class B uni
5% and fall by 1% for each full year the investor holds the portfolio (until the fifth year). Annual management fees of 0.5%
units). Assume the rate of return on the fund portfolio is 10% annually, what will be the value of a $10,000 investment in C
units if the units are sold after (a) 1 year, (b) 4 years and (c) 10 years. Which fee structure will provide higher net proceeds
investment horizon?

Class A Units -
Gross Amount Invested
Net Amount Invested (After 4% Front-end Load)
Value of Fund after 1 year
Value of Fund after 4 years
Value of Fund after 10 years

Class B Units -
Gross Amount Invested
Net Amount Invested
Value of Fund after 1 year
Value of Fund after 4 years
Value of Fund after 10 years
ont-end load of 4% and Class B units with an back-end load fees (for Class B units only) that start at
estor holds the portfolio (until the fifth year). Annual management fees of 0.5% (for both classes of
nd portfolio is 10% annually, what will be the value of a $10,000 investment in Class A and Class B
) 4 years and (c) 10 years. Which fee structure will provide higher net proceeds at the end of the

Amount in $
10,000
9,600
10,507.20
13,776.35
23,682.57

Amount in $
10,000
10,000
10,507.20
14,206.87
24,669.35
 Reference Only
Working Note - Class A
Amt Invested 10,000
Front-end Load 400
Net Amt Invested 9,600
Year 1
Returns 10,560
Given Mgt Fees 52.80
=D8*(1-4%) Investment Value at end of Year 10,507.20
=D9*(1+10%)^1*(1-0.5%)^1 Year 2
=D9*(1+10%)^4*(1-0.5%)^4 Returns 11,557.92
=D9*(1+10%)^10*(1-0.5%)^10 Mgt Fees 57.79
Investment Value at end of Year 11,500.13
Year 3
Given Returns 12,650.14
=D15 Mgt Fees 63.25
=D16*(1+10%)^1*(1-0.5%)^1*(1-4%) Investment Value at end of Year 12,586.89
=D16*(1+10%)^4*(1-0.5%)^4*(1-1%) Year 4
=D16*(1+10%)^10*(1-0.5%)^10*(1-0%) Returns 13,845.58
Mgt Fees 69.23
Investment Value at end of Year 13,776.35
nly Reference Only
Class A Working Note - Class B
Given Amt Invested 10,000 Given
=H3*4% Net Amt Invested 10,000 =L3
=H3-H4 Year 1
Returns 11,000.00 =L4*(1+10%)
=H5*(1+10%) Mgt Fees 55.00 =L6*0.5%
=H7*0.5% Back-end Load 437.80 =(L6-L7)*4%
=H7-H8 Investment Value at end of Year 10,507.20 =L6-L7-L8
Year 2
=H9*(1+10%) Returns 12,039.50 =(L6-L7)*(1+10%)
=H11*0.5% Mgt Fees 60.20 =L11*0.5%
=H11-H12 Back-end Load 359.38 =(L11-L12)*3%
Investment Value at end of Year 11,619.92 =L11-L12-L13
=H13*(1+10%) Year 3
=H15*0.5% Returns 13,177.23 =(L11-L12)*(1+10%)
=H15-H16 Mgt Fees 65.89 =L16*0.5%
Back-end Load 262.23 =(L16-L17)*2%
=H17*(1+10%) Investment Value at end of Year 12,849.12 =L16-L17-L18
=H19*0.5% Year 4
=H19-H20 Returns 14,422.48 =(L16-L17)*(1+10%)
Mgt Fees 72.11 =L21*0.5%
Back-end Load 143.50 =(L21-L22)*1%
Investment Value at end of Year 14,206.87 =L21-L22-L23
Mutual funds can effectively charge sales fees in one of three ways: front end load fees, 12b-1(i.e. annual fees), or deferre
back-end) load fees. Assume that SAS Fund offers its investors the choice of any one of the following sales fee arrangemen
i) 3% front –end load
ii) 0.5% deduction fee
iii) 2% back-end load, paid at the liquidation of the investor’s position.
Also assume that SAS Fund averages gross NAV growth of 12% per year.

a) If you start with $1,00,000 in investment capital, calculate what an investment would be worth in 3 years under each of
fee schemes. Indicate which scheme you prefer.
b) if your investment horizon were to change to 10 years demonstrate whether your decision would change.
c) Explain the relationship between the timing of the sales charge and your investment horizon. In general if you intend to
investment for a long time, which scheme would you prefer?

a)
Particulars 3% front-end 0.5% annual fee
Amount Invested 100,000 100,000
Value of Investment after 3 years 136,278 138,396
=B17*(1-3%)*(1+12%)^3 =C17*(1+12%)^3*(1-0.5%)^3

b)
Particulars 3% front-end 0.5% annual fee
Amount Invested 100,000 100,000
Value of Investment after 10 years 301,267 295,400
=B23*(1-3%)*(1+12%)^10 =C23*(1+12%)^10*(1-0.5%)^10
2b-1(i.e. annual fees), or deferred (i.e.
following sales fee arrangements;

e worth in 3 years under each of the sales

on would change.
izon. In general if you intend to hold your

2% back-end
100,000
137,683
=D17*(1+12%)^3*(1-2%)

2% back-end
100,000 1.0511 =(1+0.5%)^10
304,373 5.11% =F23-1
=D23*(1+12%)^10*(1-2%)
The Focus Fund is a mutual fund that holds long term positions in a small number of non-dividend paying stocks. The
holdings at the end of two years are as follows.
Year 1 Market Year 2 Market
Stock No of shares Price ($) Value No of shares Price ($) Value
A 100,000.0 45.25 4,525,000 100,000 48.75 4,875,000
B 225,000.0 25.38 5,710,500 225,000 24.75 5,568,750
C 375,000.0 14.50 5,437,500 375,000 12.38 4,642,500
D 115,000.0 87.13 10,019,950 115,000 98.50 11,327,500
E 154,000.0 56.50 8,701,000 154,000 62.50 9,625,000
F 175,000.0 63.00 11,025,000 175,000 77.00 13,475,000
G 212,000.0 32.00 6,784,000 212,000 38.63 8,189,560
H 275,000.0 15.25 4,193,750 275,000 8.75 2,406,250
I 450,000.0 9.63 4,333,500 450,000 27.45 12,352,500
J 90,000.0 71.25 6,412,500 90,000 75.38 6,784,200
K 87,000.0 42.13 3,665,310 87,000 49.63 4,317,810
L 137,000.0 19.88 2,723,560 0 27.88 0
M 0.0 17.75 0 150,000 19.75 2,962,500
Total 2,395,000 73,531,570 2,408,000 86,526,570
Cash 3,542,000 2,873,000

Expenses 730,000 830,000

a) Calculate the NAV for a unit of the Focus Fund at the end of year 1. Include the cash position in the net total portfolio
value. Also note that Focus Fund has issued 54,30,000 units

b) Immediately after calculating its year 1 NAV, Focus Fund sold its position in Stock L and purchased its position in Stock M
(both done at year 1 prices). Calculate Year 2 NAV of the fund per unit and compute its growth rate.

c) At the end of year 2, how many fund units of Focus Fund could the manager redeem without having to liquidate her
stock positions.

d) If immediately after calculating the Year 2 NAV, the manager received investor redemption requests for 500,000 units,
how many stocks/shares of each stock would she have to sell in order to maintain the same PROPORTIONAL ownership
position in each stock? Assume she liquidates the entire cash position first before selling holdings.

Solution:
a)
MV of Investments 73,531,570 Given
Cash Balance 3,542,000 Given
Total Assets 77,073,570 =SUM(B39:B40)
Less: Liabilities (o/s expenses) 730,000 Given
Net Assets 76,343,570 =B41-B42
Units Outstanding 5,430,000 Given
NAV 14.06 =B43/B44

b)
MV of Investments 86,526,570 Given
Cash Balance 2,873,000 Given
Total Assets 89,399,570 =SUM(B48:B49)
Less: Liabilities (o/s expenses) 830,000 Given
Net Assets 88,569,570 =B50-B51
Units Outstanding 5,430,000 Given
NAV 16.31 =B52/B53

Growth rate of NAV 16.01% =(B54-B45)/B45

c)
Cash Balance after Year 2 2,873,000 Given
NAV After Year 2 16.31 =B54
Units that can be redeemed without liquidating / selling investments 176,137.13 =B60/B61

d)
Redemption Requests (Units) 500,000 Given
Redemption Requests ($) 8,155,577 =B65*B54
Cash Balance Available 2,873,000 =B60
Value of Shares to be Liquidated 5,282,577 =B66-B67

Stock No of Shares Price

A 100,000 48.75
B 225,000 24.75
C 375,000 12.38
D 115,000 98.50
E 154,000 62.50
F 175,000 77.00
G 212,000 38.63
H 275,000 8.75
I 450,000 27.45
J 90,000 75.38
K 87,000 49.63
L - 27.88
M 150,000 19.75
TOTAL 2,408,000
nd paying stocks. The

Market
ce ($) Value
48.75 4,875,000
24.75 5,568,750
12.38 4,642,500
98.50 11,327,500
62.50 9,625,000
77.00 13,475,000
38.63 8,189,560
8.75 2,406,250
27.45 12,352,500
75.38 6,784,200
49.63 4,317,810
27.88 0
19.75 2,962,500
86,526,570
873,000

830,000

n the net total portfolio

ased its position in Stock M

ate.

having to liquidate her

quests for 500,000 units,

OPORTIONAL ownership
s.

=SUM(B39:B40)

=SUM(B48:B49)
=(B54-B45)/B45

Market Value % Weight <-- Formula Value of Shares to <-- Formula No of Shares to
of Shares be Liquidated be Liquidated
4,875,000 5.63% =D71/$D$84 297,626 =E71*$G$84 6,105
5,568,750 6.44% =D72/$D$84 339,981 =E72*$G$84 13,737
4,642,500 5.37% =D73/$D$84 283,432 =E73*$G$84 22,894
11,327,500 13.09% =D74/$D$84 691,561 =E74*$G$84 7,021
9,625,000 11.12% =D75/$D$84 587,621 =E75*$G$84 9,402
13,475,000 15.57% =D76/$D$84 822,669 =E76*$G$84 10,684
8,189,560 9.46% =D77/$D$84 499,985 =E77*$G$84 12,943
2,406,250 2.78% =D78/$D$84 146,905 =E78*$G$84 16,789
12,352,500 14.28% =D79/$D$84 754,139 =E79*$G$84 27,473
6,784,200 7.84% =D80/$D$84 414,186 =E80*$G$84 5,495
4,317,810 4.99% =D81/$D$84 263,609 =E81*$G$84 5,311
- 0.00% =D82/$D$84 - =E82*$G$84 -
2,962,500 3.42% =D83/$D$84 180,865 =E83*$G$84 9,158
86,526,570 100.00% =D84/$D$84 5,282,577 REVERSE CALC 147,012
 <-- Formula

=G71/C71
=G72/C72
=G73/C73
=G74/C74
=G75/C75
=G76/C76
=G77/C77
=G78/C78
=G79/C79
=G80/C80
=G81/C81
=G82/C82
=G83/C83
=SUM(I71:I83)
You are considering an investment in a mutual fund with a 4% front load and expense ratio of 0.5%. You
can invest instead in a Bank CD paying 6% interest. Assume $100 as investment
a) If you plan to invest for two years, what annual rate of return must the fund portfolio earn for you to
be better off in the fund than in a CD? Assume annual compounding of returns.
b) How does your answer change if you plan to invest for six years? Why does your answer change?
c) Now suppose that instead of a front -load the fund assesses an additional 12b-1 fee of 0.75% per
year. What annual rate of return must the fund portfolio earn for you to be better off in the fund than in
the CD? Does your answer depend on your time horizon?

Soln-
a)
Bank CD
Amount ($) 100.00 Given
Rate of Return 6% Given
Tenor (years) 2 Given

Maturity / Future Value 112.36 =B14*(1+B15)^B16

Mutual Fund
Gross Amount ($) 100.00 Given
Net Amount after Front Load of 4% 96.00 =B21*(1-4%)
Mutual Funds must earn some Rate of Return so that the Maturity / Future Value exactly equals to that of a Bank Deposit
$96 invested in a Mutual Fund should translate to $112.36 after 2 years

112.36 = 96*(1+r)^2*(1-0.5%)^2
96*(1+r)^2*(1-0.5%)^2 112.36 =B18
(1+r)^2 95.0424 112.36 =B18
(1+r)^2 1.1822 =C28/B28
1+r 1.0873 =SQRT(C29)
r 8.73% =C30-1

b)
Bank CD
Amount ($) 100.00 Given
Rate of Return 6% Given
Tenor (years) 6 Given

Maturity / Future Value 141.85 =B36*(1+B37)^B38

Mutual Fund
Gross Amount ($) 100.00 Given
Net Amount after Front Load of 4% 96.00 =B43*(1-4%)
Mutual Funds must earn some Rate of Return so that the Maturity / Future Value exactly equals to that of a Bank Deposit
$96 invested in a Mutual Fund should translate to $141.85 after 6 years
 141.85 = 96*(1+r)^6*(1-0.5%)^6
96*(1+r)^6*(1-0.5%)^6 141.85 =B40
(1+r)^6 93.15576 141.85 =B40
(1+r)^6 1.5227 =C50/B50
1+r 1.0726 =C51^(1/6)
r 7.26% =C52-1

c)
1 YEAR
Bank CD
Amount ($) 100.00 Given
Rate of Return 6% Given
Tenor (years) 1 Given

Maturity / Future Value 106.00 =B59*(1+B60)^B61

Mutual Fund
Gross Amount ($) 100.00 Given
Net Amount ($) 100.00 =B66

106 = 100*(1+r)^1*(1-0.5%)^1*(1-0.75%)^1
100*(1+r)^1*(1-0.5%)^1*(1-0.75%)^1 106.00 =B63
(1+r)^1 98.7538 106.00 =B63
(1+r)^1 1.0734 =C71/B71
1+r 1.0734 =C72^(1/1)
r 7.34% =C73-1
als to that of a Bank Deposit

als to that of a Bank Deposit

 6 YEAR
Bank CD
Amount ($) 100.00 Given
Rate of Return 6% Given
Tenor (years) 6 Given

Maturity / Future Value 141.85 =H59*(1+H60)^H61

Mutual Fund
Gross Amount ($) 100.00 Given
Net Amount ($) 100.00 =H66

141.85 = 100*(1+r)^6*(1-0.5%)^6*(1-0.75%)^6
100*(1+r)^6*(1-0.5%)^6*(1-0.75%)^6 141.85
(1+r)^6 92.7516 141.85
(1+r)^6 1.5294
1+r 1.0734
r 7.34%
1
=H63
=H63
=I71/H71
=I72^(1/6)
=I73-1
=I74=C74
Reconsider the Question 1 Fingroup data. If during the year the portfolio manager sells all the
holdings of stock D and replaces it with 200,000 shares of stock E at $ 50 per share and 200,000
shares of stock F at $ 35 per share, what is the portfolio turnover rate? The fund also received
subscriptions to the extent of $20 lacs during the year

The composition of the Fingroup Fund portfolio is as follows:

Stock Shares Price ($)
A 200,000 35
B 300,000 40
C 400,000 20
D 600,000 25

Value of Shares Sold (Stock

D) 15,000,000 =B10*C10
Value of Shares Bought
(Stock E & F) 17,000,000 =(200000*50)+(200000*35)
Whichever is Lower 15,000,000 =MIN(B12,B13)

Average AUM
Opening AUM 42,000,000 =SUMPRODUCT(B7:B10,C7:C10)
Closing AUM 44,000,000 =B17-B12+B13
Average AUM 43,000,000 =AVERAGE(B17:B18)

Portfolio Turnover 34.88% =B14/B19

0)+(200000*35)

UCT(B7:B10,C7:C10)
Consider the following data of GM Mutual Fund (Income plan):
Particulars Rs. in crores
Value of investments 868.55
Receivables 65.15
Accrued income 43.40
Other current assets 260.57
Liabilities 195.43
Accrued expenses 43.40
No. of units outstanding 70.00
Calculate the NAV per unit

Solution:
Assets 1,237.67 =SUM(B3:B6)
Liabilities 238.83 =SUM(B7:B8)
Net Assets 998.84 =B13-B14
No. of units outstanding 70.00 =B9
NAV per unit 14.27 =B15/B16
Consider the following information related to an Index fund and its benchmark index for a period of six months:

Months Return of Fund Return of Benchmark index

Apr 2.50% 2.55%

May -0.50% 0.00%
June 1.40% 1.44%
July 1.00% 1.00%
Aug -1.70% 0.08%
Sept -4.00% 0.00%
Calculate the tracking error of the Index fund’s return during the last six months

Solution:
Months Return of Fund Return of Benchmark index Difference
Apr 2.50% 2.55% -0.05% =B13-C13
May -0.50% 0.00% -0.50% =B14-C14
June 1.40% 1.44% -0.04% =B15-C15
July 1.00% 1.00% 0.00% =B16-C16
Aug -1.70% 0.08% -1.78% =B17-C17
Sept -4.00% 0.00% -4.00% =B18-C18
Tracking Error / Active Risk 1.59% =STDEV.S(D13:D18)

Active Returns -1.06% =AVERAGE(B13:B18)-AVERAGE(C13:C18)

Information Ratio = Active Returns / Active Risk -0.6672 =D21/D19

od of six months: To be done in detail with Module 5

E(B13:B18)-AVERAGE(C13:C18)
Consider the following data of an International fund
Particulars Rs. in crores
Investment 2,250.00 1 Sales charge is a commission
Receivable 175.00 (broker, financial planner, inv
Accrued Income 62.00 2 In general, there are two kind
Other current assets 672.50
Liabilities 725.00
Accrued expenses 115.25
No. of units outstanding 175.00
Public offer price p.u. 13.52

Calculate the sales charge % on Public Offer Price

Public offer price NAV/(1 - Sales charge)

Sales Charge 1- (NAV / Offer Price)

Net Assets 2,319.25 =SUM(B3:B6)-SUM(B7:B8)

Units Outstanding 175.00 =B9
NAV per unit 13.25 =B17/B18

Sales Charge 1- (NAV / Offer Price)

1.98% =1-(B19/B10)
Sales charge is a commission paid by an investor on his or her investment in a mutual fund. The sales charge is paid to a financial inter
(broker, financial planner, investment adviser, distributor, etc.). Sales charges are expressed as a percentage of the investment value.
In general, there are two kinds of sales charges: front-end loads and back-end loads.

Amt Raised 2,366.00 =B9*B10

NAV 2,319.25 =B19*B9
Sales Charge 46.75 =H12-H13
Sales Charge % 1.98% =H14/H12
charge is paid to a financial intermediary
entage of the investment value.
The following information is related to the assets and liabilities of JM Mutual Fund:

The accrued expenses and accrued income are Rs. 45 crores and Rs. 50 crores
respectively. If the number of outstanding units is 70 crores, calculate the NAV per
unit.

Soln-
Accrued Expenses
Amount 45.00 Given
% of Total Liabilities 3.44% Given
Total Liabilities inc Unit Holders Claim 1,308.14 =B38/B39

Total Liabilities exc Unit Holders Claim 240.17 =(14.92%+3.44%)*B40

Accrued Income
Amount 50.00 Given
% of Total Assets 3.82% Given
Total Assets 1,308.90 =B45/B46

NAV per unit 15.27 =(B47-B42)/70

Consider the following data of JM Mutual Fund (Income plan):
Particulars Rs. in crore
Value of investments 2,084.52
Receivables 162.88
Accrued income 47.74
Other current assets 573.23
Liabilities 488.56
Accrued expenses 112.92
If the number of outstanding units is 160 crore and sales charge is 2.5% on the Public Offer Price,
calculate the public offering price.

NAV 14.17 =(SUM(B3:B6)-SUM(B7:B8))/160

Public offer price NAV/(1 - Sales charge)

Public Offer Price 14.53 =B12/(1-2.5%)

3:B6)-SUM(B7:B8))/160
Consider the following data of a mutual fund scheme:
Particulars Rs. in crore
Value of investments 2,056.25
Receivables 158.25
Accrued income 25.75
Other current assets 325.26
Liabilities 449.56
Accrued expenses 52.92
If the number of outstanding units is 200 crore and sales charge is 1.5% on the Public offer price,
calculate the public offering price.

NAV 10.32 =(SUM(B3:B6)-SUM(B7:B8))/200

Public Offer Price 10.47 =B12/(1-1.5%)

B7:B8))/200
Which of the following statement(s) is/are not correct about various types of mutual funds?

(a) In Income Funds, investment is made in various combinations of high yielding common stocks and bonds with a view to
income on regular basis with safety of principal investment
(b) Balanced funds have modest risk component
(c) In Performance Funds, investment is made in buying equity shares of small companies with relatively high price/earnin
higher price volatility
(d) Units of close-ended schemes sell at values which can be more than or equal to or less than their NAV
(e) Open-ended Mutual fund units are issued like any other company’s new issues listed and quoted atstock exchange.
ocks and bonds with a view to extract

h relatively high price/earnings ratio and

an their NAV
d quoted atstock exchange.
Consider the following data of J.M. Mutual Fund (Income plan):
Particulars Rs. in crore
Value of investments 4,169.04
Receivables 325.76
Accrued income 95.48
Other current assets 1,146.46
Liabilities 977.12
Accrued expenses 225.84
Number of units outstanding (Crores) 320.00
Entry Load 2.50%
Mr. Prashant wants to purchase units of this scheme. Calculate the per unit price that will be invested in the scheme.

NAV 14.17 =(SUM(B3:B6)-SUM(B7:B8))/B9

NAV (After Front / Entry Load) 13.81 =B13*(1-B10)

in the scheme.
The following is the information pertaining to an open ended mutual fund scheme:
Particulars
Liabilities
Receivables
Accrued income
Other current assets
Value of investments
Accrued expenses
The number of units outstanding is 21.4 million and the fund charges 2% as entry load on public offer price. Calculate the publ

Public Offer Price

NAV
Public Offer Price
 Rs. in mn
56.20
18.80
6.30
75.60
280.00
12.30
ad on public offer price. Calculate the public offer price.

NAV / (1-Sales Charge)

14.59 =(SUM(B4:B7)-B3-B8)/21.4
14.89 =B13/(1-2%)
Consider the following data pertaining to equity scheme offered by Wealthy MF scheme:
Particulars
Investments
Receivables
Accrued income
Accrued expenses
Other current assets
Liabilities
The number of outstanding units is 195 crore and repurchase price is Rs.13.25. Calculate the applicable exit load on the NA

NAV

Repurchase Price / Selling Price (Given)

Exit Load
Exit Load %
Rs. in crore
2,550.00
187.00
95.00
150.00
755.00
750.00

13.78 =(B3+B4+B5+B7-B6-B8)/195

13.25 Given

0.53 =B11-B13
3.84% =B15/B11
The NAV of each unit of an ETF at the beginning of the year was Rs.15. By the year
end, its NAV equals Rs.15.50. At the beginning of the year, each unit was selling on
the stock exchange at a 2% premium to NAV. By the end of the year, each unit is
selling at a 4% discount to NAV. The fund paid year-end distributions of income and
capital gains of Rs.2.60 on each unit. Calculate the rate of return to the investor in the
fund during the year.

Soln-
NAV at Beginning / Purchase NAV 15.30 =15*(1+2%)
NAV at End / Selling NAV 14.88 =15.5*(1-4%)
Income and Capital Gain Distributions 2.60 Given

Rate of Return 14.25% =(B9-B8+B10)/B8

The following is the information pertaining to an open-ended mutual fund scheme.
Particulars
Value of investments
Receivables
Accrued income
Other current assets
Liabilities
Accrued expenses
If the number of outstanding units is 175 lakh and the public offer price is Rs.15.27. Calculate the entry load charged by the fu

NAV

Public Offer Price (Given)

Public offer price

Sales charge
Sales charge / Entry Load %
 Rs. in million
240.00
15.20
5.20
42.50
33.05
10.40

14.83 =(SUM(B3:B6)-SUM(B7:B8))/17.5

15.27 Given

NAV/(1 - Sales charge)

1-(NAV / Offer Price)
2.91% =1-(B11/B13)