Numerical Sheet 2

Mutual Funds
Type 1: Calculation of NAV
1. Global mutual fund has the following details, Calculate its NAV based on the following:
Market value of all investments 1100 crore
Assets 50 crore
Liabilities 80 crore
Number of outstanding unis 100 crore

2. Universal mutual fund has the following details, Calculate its NAV based on following:
Portfolio of mutual fund
Shares of X Ltd. 60 crore
Shares of Y Ltd. 40 crore
Debentures of M Ltd. 75 crore
Government securities 45 crore

Other details of mutual fund

Accrued income 50 crore
Bank balance 60 crore
Accrued expense 40 crore
Size of the fund (20 crore units of 10 rs each) 200 crore

Shubhamm Sukhlecha (CA, CS, LLM) INSPIRE ACADEMY

 3. Bestworth mutual fund has the following details, Calculate its NAV based on following:
Portfolio of mutual fund
Shares of X Ltd. 160 crore
Shares of Y Ltd. 140 crore
Debentures of M Ltd. 175 crore
Government securities 145 crore

Other details of mutual fund

Accrued income 150 crore
Bank balance 160 crore
Accrued expense 140 crore
Size of the fund (50 crore units of 10 rs each) 500 crore

Type 2 : Entry load and Exit load questions

Shubhamm Sukhlecha (CA, CS, LLM) INSPIRE ACADEMY

Shubhamm Sukhlecha (CA, CS, LLM) INSPIRE ACADEMY
 4. Calculate the offer price and the redemption price, if the NAV of the unit is 15 rs, and the entry
load and exit load is 2% and 3% respectively.

5. A unit of Ever grow Equity Fund is redeemed at Rs.15, the exit load being 2.25%. Calculate the
NAV.

Shubhamm Sukhlecha (CA, CS, LLM) INSPIRE ACADEMY

 6. The redemption price of a mutual fund unit is 12 while the front-end load and back-end load
charges are 2% and 3% respectively. You are required to calculate:
a) Net asset value (NAV) per unit; and
b) Public offer-price of the unit.

Shubhamm Sukhlecha (CA, CS, LLM) INSPIRE ACADEMY

 7. Define ‘NAV’ and ‘offer price. If Rahul invests Rs.10, 000 in a scheme that charges 2% front end
load at NAV of Rs.10 per unit, what shall be the public offer price?

8. The redemption price of a mutual fund unit is Rs.48 while the front-end load and back-end load
charges are 2% and 3% respectively. You are required to calculate —
(i) Net asset value per unit; and
(ii) Public offer price of the unit.

Shubhamm Sukhlecha (CA, CS, LLM) INSPIRE ACADEMY

Type 3: Calculation of return
9. Mr. Rajesh invested 1,00,000 rs. in shares of SRL Ltd, he received dividend of 12,000 on these
shares. At the year end the MP of the shares is 1,10,000. Calculate the return for Mr. Rajesh.

10. Mr. Rajesh invested 1,00,000 rs. in shares of SRL Ltd on 1st Jan 2019, he received dividend of
12,000 on these shares. On 30th june the MP of the shares is 1,10,000. Calculate the return for
Mr. Rajesh.

Shubhamm Sukhlecha (CA, CS, LLM) INSPIRE ACADEMY

 11. Mr. Rajesh invested 1,00,000 rs. in shares of SRL Ltd on 1st Jan 2019, he received dividend of
12,000 on these shares. On 31st September the MP of the shares is 1,10,000. Calculate the
return for Mr. Rajesh.

12. Mr. Rajesh invested 1,00,000 rs. in shares of SRL Ltd. After 30 days the MP of the shares is
1,05,000. Calculate the return for Mr. Rajesh.

Shubhamm Sukhlecha (CA, CS, LLM) INSPIRE ACADEMY

 Past Year Problems
1. [June 15] Super mutual fund has launched a scheme named 'Super Bonanza'. The net asset
value (NAV) of the scheme is 12.00 per unit. The redemption price is 11.65 per unit
and offer price is 12.50 per unit. You are required to calculate —
a. Front-end load; and
b. Back-end load. (6 marks)

2. [Dec 16] Compute NAV and rate of return for a unit holder who bought a unit at 17.60 and
received a dividend of 2 per unit during the period. Face value of the unit is 10. Other
details are as under:
Market value of funds portfolio 4,200
Size of the scheme 2,000
Accrued income 100
Receivables 100
Accrued expenses 275
Liabilities 150
Number of outstanding units : 200 crore. (4 marks)

3. [June 17] The redemption price of a mutual fund unit is ` 48 while the front-end load and back-
end load charges are 2% and 3% respectively. Compute NAV per unit and Public offer
price of the unit. (4 marks)

4. [June 18] The following is the information pertaining to the portfolio of Dolex Mutual Fund :

Stock No. of Shares Current Market Price

L and T 1,10,000 2,685.45
cipla 3,12,000 259.95
Wipro 4,50,000 523.10
HDFC 3,90,000 883.30
Tata Steel 2,99,000 502.75

The fund has not borrowed any money, but its accrued management fee with the
portfolio manager currently total ` 30,00,000. The number of units outstanding is
10,75,73,000. Compute the value of the portfolio and NAV. (4 marks)

5. [Dec 18] A mutual fund has a NAV of ` 11.50 at the beginning of the year. At the end of the
year NAV increases to ` 12.10. Meanwhile the fund distributes ` 0.80 as dividend and
` 0.70 as capital gains.
a. What is the fund’s return during the year ?
b. Had these distributions been re-invested at an average NAV of ` 11.80,
what is the return for 200 units ? (5 marks)

6. [June 19] A Mutual Fund having 300 units has shown Net Asset Value (NAV) of ` 8.75 and `
9.45 at the beginning and at the end of the year respectively. The Mutual Fund has
given two options :
a. Pay ` 0.75 per unit as dividend and ` 0.60 per unit as capital appreciation; or
b. These distributions are to be reinvested at an average NAV of ` 8.65 per unit.
What difference it would make in terms of return available and which option is
preferable ?

Shubhamm Sukhlecha (CA, CS, LLM) INSPIRE ACADEMY

7. [Dec 19] A mutual fund has a NAV of 12.5 at the beginning of the year. At the end of the year
NAV increases to 12.50. Meanwhile the fund distributes .75 as dividend and .85 as
capital gains.
a. What is the fund’s return during the year?
b. Had these distributions been re-invested at an average NAV of ` 12.20,
what is the return for 400 units? (5 marks)
8. [Dec 20] The information relating to one Equity Oriented Mutual Fund is given below :

As on 2 nd January, As on 3rd January,

2019 (in thousands) 2019 (in thousands)
Market Value of Fund’s 19,300 19,800
Portfolio
Receivable 200 200
Other Accrued Income 150 150
Other Payables 100 100
Accrued Expenses 50 50
Number of outstanding shares – 500 (in thousands)
Face value per unit is ` 10.
You are required to calculate :
a. NAV of the fund on 2nd January, 2019 and 3rd January, 2019.
b. Ramesh invested ` 1,95,000 in this Fund on 2nd January, 2019 at 02:00 PM,
through Internet Banking Payment System. Calculate the number of mutual
fund units allotted to him. Assume that there is no transaction cost. (5 marks)

9. (June 24) Based on the following information, determine the NAV of a regular income scheme
on per unit basis :
Listed share at cost 12 crore
Cash in hand 1 crore
Bond and debenture at cost 4.3 crore
Of these, bonds not listed and quoted 1 crore
Other fixed interest securities at cost 4.5 crore
Expenditure accrued 2.25 crore
No. of units (` 10 face value) 20 lakhs
The listed shares were purchased when––
Index was– 15,000
Present Index- 20,000
Value of listed bonds and debenture at NAV date 10 crore
There has been a diminution of 30% in unlisted bonds and debentures

10. (June 24) Nirav attained the age of 18 years recently. He understands the concept of
compounded return, thus started investing in a Systematic Investment Plan (SIP)
from his monthly pocket money for an amount of ` 5,000 per month at the beginning
of every month. The NAV of the scheme at the beginning of each month is given as
below :
Month 1 : 10, Month 2 : 10.50, Month 3 : 10.80, Month 4 : 11.00, Month 5 : 11.30

The NAV at the end of the 5th month is 12.10.

What will be the value of holding of Nirav the end of 5th month under this SIP plan?
(5 marks)

Shubhamm Sukhlecha (CA, CS, LLM) INSPIRE ACADEMY

10. (Dec 23) Edelweiss Mutual Fund’s portfolio related information are as below :
Stock No. of Shares
Reliance 1,10,000 1,548.24
Tata 2,57,000 548.65
Suzlon 5,05,000 329.51
Wipro 4,75,000 913.67
Richard 3,20,000 517.29

The fund does not involve borrowed money, but its accrued management fee with the
portfolio manager is 25,00,000. The number of units outstanding is 8,65,63,000.
You are required to compute the value of the portfolio and NAV.

Shubhamm Sukhlecha (CA, CS, LLM) INSPIRE ACADEMY

Shubhamm Sukhlecha (CA, CS, LLM) INSPIRE ACADEMY
Shubhamm Sukhlecha (CA, CS, LLM) INSPIRE ACADEMY
Shubhamm Sukhlecha (CA, CS, LLM) INSPIRE ACADEMY
Shubhamm Sukhlecha (CA, CS, LLM) INSPIRE ACADEMY
Shubhamm Sukhlecha (CA, CS, LLM) INSPIRE ACADEMY