On 1 st April, an open-ended scheme of Progressive Mutual Fund had 800 Lakh units outstanding with Net Asset Value (NAV) of 44.30 per unit. At the…
CA Final · Advanced Financial Management · PYQS · May 2025
On 1 st April, an open-ended scheme of Progressive Mutual Fund had 800 Lakh units outstanding with Net Asset Value (NAV) of 44.30 per unit. At the end of April, it issued 16 Lakh units at opening NAV plus 2% load, adjusted for dividend equalization. At the end of May, 8 Lakh units were repurchased at opening NAV less 2% exit load adjusted for dividend equalization. At the end of June, 60% of its available income was distributed as dividend. In respect of April-June quarter, the following additional information is available: Particulars ₹ in Lakh Portfolio Value Appreciation 965.280 Income of April 49.440 Income for May 75.070 Income for June 93.710 Calculation upto 4 decimal place. You are required to calculate- (i) Income available after distribution of dividend. (ii) Issue price at the end of April. (iii) Repurchased price at the end of May. (iv) Net Asset Value (NAV) per unit as on 30 th June.
Suggested Answer and Working Notes:
Calculation of Income available after Distribution of Dividend Units (Lakh) Per Unit (₹) Total (₹ In lakh) Income from April 800 0.0618 49.4400 Add: Dividend equalization collected on issue 16 0.0618 0.9888 816 0.0618 50.4288 Add: Income from May 0.0920 75.0700 816 0.1538 125.4988 Less: Dividend equalization paid on repurchase 8 0.1538 (1.2304) 808 0.1538 124.2684 Add: Income from June 0.1160 93.7100 808 0.2698 217.9784 Less: Dividend Paid 0.1619 (130.7870) 808 0.1079 87.1914 Calculation of Issue Price at the end of April Particulars ₹ Opening NAV 44.3000 Add: Entry Load 2% of 44.3000 0.8860 45.1860 Add: Dividend Equalization paid on Issue Price 0.0618 45.2478 Calculation of Repurchase Price at the end of May Particulars ₹ Opening NAV 44.3000 Less: Exit Load 2% of 44.3000 (0.8860) 43.4140 Add: Dividend Equalization paid on Issue Price 0.1538 43.5678 Closing NAV ₹ (Lakh) Opening Net Asset Value (₹ 44.30 × 800) 35440.0000 Portfolio Value Appreciation 965.2800 Issue of Fresh Units (16 × 45.2478) 723.9648 Income Received (49.440 + 75.070 + 93.710) 218.2200 37347.4648 Less: Units repurchased (8 × 43.5678) -348.5424 Income Distributed -130.7870 (-479.3294) Closing Net Asset Value 36868.1354 Closing Units (800 + 16 – 8) lakh 808 lakh .:. Closing NAV as on 30 th June 45.6289
Topics: Mutual Fund
Related Questions in this Topic
- Suppose a Large-cap Mutual Fund is benchmarked to a particular Index. Index and the same Mutual Fund realised the follow...
- The Investment portfolio of a Fund is as follows: Coupon Rate (%) Purchase Rate (FV ₹ 100 per Bond) Duration (Ye...
- You are required to calculate: (iv) Net Asset Value (NAV) as on 30th June. Note: Round off all calculations upto 4 dec...
- You are required to calculate: (iii) Repurchase price at the end of May; and
- You are required to calculate: (ii) Issue price at the end of April;