Mr. A, has invested in the Growrich Mutual Fund's Scheme. The details of the Mutual Fund Scheme are given below: Asset Value at the beginning of the…
CA Final · Advanced Financial Management · PYQS · May 2024
Mr. A, has invested in the Growrich Mutual Fund's Scheme. The details of the Mutual Fund Scheme are given below: Asset Value at the beginning of the month 78.50 Annualized Return 16% Distribution made in the nature of Income and Capital Gain (per unit respectively) 0.40 & ₹ 0.30 You are required to: (i) Calculate the month end Net Asset Value of the Growrich Mutual Fund Scheme (Round off to 2 decimals) (ii) Comment briefly on the Month end NAV.
Suggested Answer and Working Notes:
(i) Calculation of NAV at the end of month: Given Annual Return = 16% Hence Monthly Return = 1.33% (r) r = (NAV t - NAV t-1 ) + I t + G t / NAV t-1 0.0133 = (NAV t -78.50) +0.40 +0.30 /78.50 1.04405 = NAV t -77.80 NAV t = 78.84 (ii) COMMENT- Closing NAV is increased by - 0.34 i.e. (₹ 78.84 - 78.50). So, there is slight change in NAV.
Topics: Mutual Fund
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