On 1st April 2024 Fair Return Mutual Fund has the following assets and prices at 4.00 p.m. Shares No. of Shares Market Price Per Share (₹) A Ltd.…

CA Final · Advanced Financial Management · RTP · January 2026
On 1st April 2024 Fair Return Mutual Fund has the following assets and prices at 4.00 p.m. Shares No. of Shares Market Price Per Share (₹) A Ltd. 20000 39.40 B Ltd. 100000 965.20 C Ltd. 20000 528.80 D Ltd. 200000 1349.80 E Ltd. 60000 51.80 No. of units of funds 1600000 Please calculate: (a) NAV of the Fund on 1st April 2024. (b) Assuming that on 1st April 2024, Mr. X, a HNI, send a cheque of 2 Crore to the Fund and Fund Manager immediately purchases 36000 shares of C Ltd. and balance is held in bank. Then what will be position of fund. (c) Now suppose on 2nd April 2024 at 4.00 p.m. the market price of shares is as follows: Shares ₹ A Ltd. 40.60 B Ltd. 1027.40 C Ltd. 581.60 D Ltd. 1343.80 E Ltd. 88.40 Then what will be new NAV. Note: Round off all calculations upto two decimal points.

Suggested Answer and Working Notes:

(a) NAV of the Fund. = (7,88,000+9,65,20,000+1,05,76,000+26,99,60,000+31,08,000) / 1600000 = 38,09,52,000 / 1600000 = 238.095 rounded to 238.10 (b) The revised position of fund shall be as follows: Shares No. of shares Price Amount (₹) A Ltd. 20000 39.40 7,88,000 B Ltd. 100000 965.20 9,65,20,000 C Ltd. 56000 528.80 2,96,12,800 D Ltd. 200000 1349.80 26,99,60,000 E Ltd. 60000 51.80 31,08,000 Cash 9,63,200 40,09,52,000 No. of units of fund = 1600000 + (20000000 / 238.10) = 1683998.32 (c) On 2 nd April 2024, the NAV of fund will be as follows: Shares No. of shares Price Amount (₹) A Ltd. 20000 40.60 8,12,000 B Ltd. 100000 1027.40 10,27,40,000 C Ltd. 56000 581.60 3,25,69,600 D Ltd. 200000 1343.80 26,87,60,000 E Ltd. 60000 88.40 53,04,000 Cash 9,63,200 41,11,48,800 NAV as on 2 nd April 2024 = 41,11,48,800 / 1683998.32 = 244.15 per unit

Topics: Mutual Fund

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