On 1 st April 2019 FR Mutual Fund has the following assets and prices at 4.00 p.m. Shares No. of Shares Market Price Per Share (₹) A Ltd. 10000…

CA Final · Advanced Financial Management · MTP · September 2025
On 1 st April 2019 FR Mutual Fund has the following assets and prices at 4.00 p.m. Shares No. of Shares Market Price Per Share (₹) A Ltd. 10000 19.70 B Ltd. 50000 482.60 C Ltd. 10000 264.40 D Ltd. 100000 674.90 E Ltd. 30000 25.90 No. of units of funds 8,00,000 Required: Calculate NAV of the Fund on 1 st April 2019.Assess the position of Fund, assuming that on 1 st April 2019, Mr. X, an HNI, send a cheque of 50,00,000 to the Fund and Fund Manager immediately purchases 18000 shares of C Ltd. and balance is held in bank.

Suggested Answer and Working Notes:

(i) NAV of the Fund = (₹ 1,97,000 +2,41,30,000 +26,44,000 +6,74,90,000 +7,77,000) / 800000 = 9,52,38,000 / 800000 = 119.0475 rounded to 119.05 (ii) The revised position of fund shall be as follows: Shares No. of shares Price Amount (₹) A Ltd. 10000 19.70 1,97,000 B Ltd. 50000 482.60 2,41,30,000 C Ltd. 28000 264.40 74,03,200 D Ltd. 100000 674.90 674,90,000 E Ltd. 30000 25.90 7,77,000 Cash 2,40,800 10,02,38,000 No. of units of fund = 800000 + (5000000 / 119.0475) = 842000

Topics: Mutual Fund

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