On 1st April 2024, an open-ended scheme of mutual fund had 600 lakh units outstanding with Net Assets Value (NAV) of 37.50. At the end of April, it…
CA Final · Advanced Financial Management · MTP · May 2025
On 1st April 2024, an open-ended scheme of mutual fund had 600 lakh units outstanding with Net Assets Value (NAV) of 37.50. At the end of April, it issued 12 lakh units at opening NAV plus 2% load, adjusted for dividend equalization. At the end of May, 6 Lakh units were repurchased at opening NAV less 2% exit load adjusted for dividend equalization. At the end of June, 70% of its available income was distributed. In respect of April-June quarter of 2024, the following additional information are available: in lakh Portfolio value appreciation 1701.88 Income of April 2024 91.800 Income for May 2024 137.700 Income for June 2024 181.800 You are required to calculate: (i) Income available for distribution; (ii) Issue price at the end of April; (iii) Repurchase price at the end of May; and (iv) Net Asset Value (NAV) as on 30th June 2024. Note: - Wherever required round off calculations upto 4 decimal points.
Suggested Answer and Working Notes:
(i) Calculation of Income available for Distribution Units (Lakh) Per Unit (₹) Total (In ₹ lakh) Income from April 600 0.1530 91.8000 Add: Dividend equalization collected on issue (12 lakh units * 0.1530) 12 0.1530 1.8360 612 0.1530 93.6360 Add: Income from May 0.2250 137.7000 612 0.3780 231.3360 Less: Dividend equalization paid on repurchase (6 lakh units * 0.3780) 6 0.3780 (2.2680) 606 0.3780 229.0680 Add: Income from June 0.3000 181.8000 606 0.6780 410.8680 Less: Dividend Paid (70% of 410.8680) 0.4746 (287.6076) Income available for distribution (Balance) 606 0.2034 123.2604 (ii) Calculation of Issue Price at the end of April 2024 Particulars ₹ Opening NAV 37.5000 Add: Entry Load 2% of 37.500 0.7500 38.2500 Add: Dividend Equalization paid on Issue Price 0.1530 Issue Price 38.4030 (iii) Calculation of Repurchase Price at the end of May 2024 Particulars ₹ Opening NAV 37.5000 Less: Exit Load 2% of 37.50 (0.7500) 36.7500 Add: Dividend Equalization paid on Issue Price 0.3780 Repurchase Price 37.1280 (iv) NAV as on 30th June 2024 (₹ Lakh) Opening Net Asset Value (₹ 37.50 × 600) 22500.00 Portfolio Value Appreciation 1701.8800 Issue of Fresh Units (12 × 38.4030) 460.8360 Income Received (91.80 + 137.70 + 181.80) 411.3000 Total Assets 25074.0160 Less: Units repurchased (6 × 37.128) -222.7680 Income Distributed -287.6076 Closing Net Asset Value 24563.6404 Closing Units (600 + 12 – 6) lakh 606 lakh Closing NAV as on 30th June 2024 40.5341
Topics: Mutual Fund
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