SFM - COMPILERrahulmalkan.com/sm-admin/lib/Study/Mutual Funds .pdf4 SFM - COMPILER Return = 75.45% 75.45 = Z – 27.7478 27.7478 x 100 ... (NAV) per unit given that operating expenses

CA – FINAL

SFM - COMPILER

MUTUAL FUNDS

PROF. RAHUL MALKAN

WWW.RAHULMALKAN.COM

CONTACT NO - 8369095160

1 SFM - COMPILER

Mutual Funds Years May Nov

RTP Paper RTP Paper

2008 NA NA Yes No

2009 Yes Yes Yes Yes

2010 Yes Yes Yes No

2011 No Yes Yes Yes




2015 No Yes No Yes


2017 Yes No Yes Yes

2018 (Old) Yes Yes Yes Yes

2018 (New) Yes Yes Yes Yes

2008

Question 1 Nov 2008 – RTP

Arun has invested in three Mutual Fund Schemes as per details below:

MF X MF Y MF Z

Date of investment 01.12.2006 01.01.2007 01.03.2007

Amount of investment 50,000 1,00,000 50,000

Net Asset Value (NAV) at entry date 10.50 10 10

Dividend received upto 31.03.2007 950 1,500 Nil

NAV as at 31.03.2007 10.40 10.10 9.80

Required:

What is the effective yield on per annum basis in respect of each of the

three schemes to Mr. Arun upto 31.03.2007?

Solution

MF A MF B MF C

Date of Investments 1/12/06 1/1/07 1/3/07

Amount of Investment 50,000 1,00,000 50,000

NAV on entry Date 10.50 10 10

Units Received 50,000 10.50 = 4761.9

1,00,000 10 = 10,000

50,000 10 = 5,000

Dividend Received 950 1,500 Nil

Dividend Per Unit 950 4761.9 = 0.1995

1,500 10,000 = 0.15

Nil

NAV at 31/3/2007 10.4 10.10 9.80

Holding Period 4 months 3 months 1 month

2 SFM - COMPILER

HPY 0.1995 – 0.1 10.5 x 100 =

0.9475%

0.15 + 0.1 10 x 100

= 2.5%

–0.2 10 x 100

= 2%

MMY 0.9475 x 3 = 2.8425% 2.5 x 4 = 10% 2 x 12 = - 24%

EAY (1 + 0.009475)3 – 1

= 2.8695%

(1.025)4 – 1

= 10.38%

(1.02)12 – 1

= –26.82%

2009

Question 2 May 2009 - RTP

On 01.07.2005 Mr. A invested in 10,000 units of face value of Rs.10 per unit.

On 31.03.2006 dividend was paid @ 10% and annualized yield was 140%. On

31.03.2007, 20% dividend was given. On 31.03.2008, Mr. A redeemed his all

his 11,270.56 units when his annualized yield was 75.45% over the period of his

holding. What are the NAVs as on 31.03.2006,31.03.2007 and 31.03.2008?

Solution

9 months 1 yr 1 Yr

1/7/2005 31/3/2006 31/3/2007 31/3/2008

Yield P.A 140% ? 75.45%

Units 10000 ? ? 11,270.56

Dividend NA 10% 20% NIL

NAV 10 X Y Z

Before we start calculation for NAV, first we need to understand that

investor is following dividend reinvestment plan because units are seen to be

increasing from 10,000 to 11,270.56 at the end of the period.

Calculation for First 9 months

Let the NAV on 31.3.2006 be X

Return from 1/7/2005 to 31.3.2006 (9 months) = 140 / 12 x 9 = 105%

HPY = Dividend Dist. + Capital Gain Dist. + Capital Appreciation

Purchase Price x 100

105 = 1(10% of 10) + (X – 10)

10 x 100

Therefore X = 19.5

Dividend = 10,000 x 1 = 10,000

3 SFM - COMPILER

Amount Reinvested = 10,000

Units Received = 10,000 / 19.5

= 512.82 units

Total Units = 10,000 + 512.82

= 10,512.82

Calculation for First 1 yr 9 months

1 yr 1 Yr

31/3/2006 31/3/2007 31/3/2008

Units 10,512.82 ? 11,270.56

Dividend 10% 20% NIL

NAV 19.5 Y Z

Note : Units standing on 31/3/2007 would be the same as on 31/3/2008

because dividend was received on 31/3/2007 which would have been

reinvested and units would have increased.

Dividend Received = 10,512.82 x 10 x 20% = 21,025.64

Units added = 11,270.56 – 10,512.82 = 757.74

Amount at which it was reinvested, which would the NAV

= 21,025.64 / 757.74 = 27.7478 NAV

Last 3 months

1 yrs

31/3/2007 31/3/2008

Yield P.A 75.45%

11,270.56 11,270.56

NIL

NAV 27.7478 Z

4 SFM - COMPILER

Return = 75.45%

75.45 = Z – 27.7478

27.7478 x 100

Z = 48.6835

Question 3 May 2009 Paper – 2 Marks

Mr. X earns 10% on his investments in equity shares. He is considering a

recently floated scheme of a Mutual Fund where the initial expenses are 6% and

annual recurring expensed are expected to be 2%. How much the Mutual Fund

scheme should earn to provide a return of 10% to Mr. X?

Solution

Indifference Point between direct return from the Fund

R2 = R1

1 – Initial Expense + Re

R2 = Return from the Fund

R1 = Direct Return

Re = Recurring Expenses

In the above Question


R1 = 10%

Re = 2%

Initial Expenses = 6%

R2 = 10

1 – 0.06 + 2 = 12.64%

Question 4 Nov 2009 - RTP

Consider the following information about the return on Classic Mutual

Fund, the market return and the T-bill returns:

Year Classic Mutual

Fund

Market Index T-bills

1994 17.1 10.8 5.4

1995 –14.6 –8.5 6.7

1996 1.7 3.5 6.5

1997 8.0 14.1 4.3

1998 11.5 18.7 4.1

1999 –5.8 –14.5 7.0

2000 –15.6 –26.0 7.9

2001 38.5 36.9 5.8

2002 33.2 23.6 5.0

2003 –7.0 –7.2 5.3

5 SFM - COMPILER

2004 2.9 7.4 6.2

2005 27.4 18.2 10.0

2006 23.0 31.5 11.4

2007 –0.6 –4.9 14.1

2008 21.4 20.4 10.7

The following additional information is available regarding the

comparative performance of five mutual funds:

Return

(%)

Standard Deviation

(%)

Beta

Alpha 1.95 20.03 0.983 0.819

Beta 11.57 18.33 0.971 0.881

Gama 8.41 22.92 1.169 0.816

Rho 9.05 24.04 1.226 0.816

Theta 7.86 15.46 0.666 0.582

From the above information, calculate all the inputs required for

determining the Sharpe’s Ratio, Treynor’s ratio and Jensen’s ratio.

Solution

Classic (Ri) Market

Index (Rm)

T-bills (Rp) Ri – Rp Rm – Rp

17.1 10.8 5.4 11.70 5.4

–14.6 –8.5 6.7 –21.30 –15.20

1.7 3.5 6.5 –4.8 –3.00

8.0 14.1 4.3 3.7 9.8

11.5 18.7 4.1 7.4 14.6

–5.8 –14.5 7.0 –12.8 –21.5

–15.6 –26.0 7.9 –23.5 –33.9

38.5 36.9 5.8 32.7 31.1

33.2 23.6 5.0 28.2 18.6

–7.0 –7.2 5.3 –12.3 –12.5

2.9 7.4 6.2 –3.3 1.2

27.4 18.2 10.0 17.4 8.2

23.0 31.5 11.4 11.6 20.1

–0.6 –4.9 14.1 –14.7 –19.0

21.4 20.4 10.7 10.7 9.7

Average 9.406 Average 8.267 Average 7.36

Standard Standard Standard

Deviation

16.40

Deviation

17.126

Deviation

2.815

Sharpe’s measure index

S =(Rp – Rp)/σp

Where,

6 SFM - COMPILER

Rp = Average Return on portfolio

Rf = Risk-free rate of return

σp = Standard deviation of portfolio

Classic Mutual Fund- Sp = Rp - Rf/σp = 9.407– 7.360/16.4 = 0.125

Market Index- Sp = Rm – Rf/σm = 8.267– 7.360/17.126 = 0.053

Classic Mutual Fund is better on the basis of the Sharpe’s measure.

Treynor’s measure

T =(Rp – Rf)/βp

βp = Beta value of portfolio.

Using regression technique to fine Beta

After making calculation by taking Market Index as (x) and Classic Mutual

Fund as (y)the values are

Market Index (x)

(x)2 Classic (y) (y)2 (xy)

10.8 116.64 17.1 292.41 184.68

–8.5 72.25 –14.6 213.16 124.1

3.5 12.25 1.7 2.89 5.95

14.1 198.81 8.0 64.00 112.8

18.7 349.69 11.5 132.25 215.05

–14.5 210.25 –5.8 33.64 84.1

–26.0 676.00 –15.6 243.36 405.6

36.9 1361.61 38.5 1482.25 1420.65

23.6 556.96 33.2 1102.24 783.52

–7.2 51.84 –7.0 49.00 50.4

7.4 54.76 2.9 8.41 21.46

18.2 331.24 27.4 750.76 498.68

31.5 992.25 23.0 529.00 724.5

–4.9 24.01 –0.6 0.36 2.94

20.4 416.16 21.4 457.96 436.56

Σx2 = 5424.72 y = 9.406

Σy = 141.1 x = 8.267

Σy2 = 5361.69 n =15

Σxy = 5070.99.

Substituting values in the above equation

b = 5070.99 – 15 x 9.406 x 8.267

5424.72 – 15 x 8.2622 = 3904.59 4399.57 = 0.88

a = 9.406 – 0.88 x 8.267 = 2.13

From above calculation Beta value of security = 0.88

Treynor’s measure of Classic Mutual Fund - T1 = 9.407– 7.360/0.88 = 2.32

Treynor’s measure of Market Index- Tm = 8.267– 7.360/1.00 = 0.907

7 SFM - COMPILER

Jensen’s performance measure

Rjt - Rij = αj + βj ( Rmt - Rft)

Where,

Rjt = Average return on portfolio j for period t

Rft = Risk less rate of interest for period t

αj = Intercept that measures the forecasting ability of the portfolio manager

βj = A measure of systematic risk

Rmt = Average return of a market portfolio for period t.

Substituting values in the above equation = 9.406 – 7.360 = αj + 0.88 (8.267 – 7.360)

αi = 2.046– 0.798 = 1.248

Question 5 : Nov Paper – 8 Marks

A mutual fund made an issue of 10,00,000 units of Rs.10 each on January 01,

2008. No entry load was charged. It made the following investments:

Rs.

50,000 Equity shares of Rs.100 each @ Rs.160 80,00,000

7% Government Securities 8,00,000

9% Debentures (Unlisted) 5,00,000

10% Debentures (Listed) 5,00,000

98,00,000

During the year, dividends of Rs.12,00,000 were received on equity

shares. Interest on all types of debt securities was received as and when due. At

the end of the year equity shares and 10% debentures are quoted at 175% and

90% respectively. Other investments are at par.

Find out the Net Asset Value (NAV) per unit given that operating expenses

paid during the year amounted to Rs.5,00,000. Also find out the NAV, if the

Mutual fund had distributed a dividend of Rs.0.80 per unit during the year to

the unit holders.

Solution

Opening = 10,00,000 x 10 = Rs.1,00,00,000 crore

Investments 98,00,000 Cash Rs.2,00,000

Fund

50,000 Equity shares of Rs.100 each @ Rs.175

7% Government Securities

9% Debentures (Unlisted)

10% Debentures (Listed) (90%)

87,50,000

8,00,000

5,00,000

4,50,000

Total 1,05,00,000

Without Distribution of Dividend

Cash

Opening Balance 2,00,000

8 SFM - COMPILER

Add Dividend Received

Add Interest Received

7% Government Security

9% Debentures

10% Debentures

Less Operating Expenses

12,00,000

56,000

45,000

50,000

(5,00,000)

Total 10,51,000

Net Asset Value (NAV) = 1,05,00,000 + 10,51,000

10,00,000 = Rs.11.551

Net Asset Value (NAV) with Dividend

Dividend = 10,00,000 x 0.80 = 8,00,000

= 1,05,00,000 + 10,51,000 – 8,00,000

10,00,000 = Rs.10.751

2010

Question 6 : May 2010 RTP

Ms. Sunidhi is working with an MNC at Mumbai. She is well versant with

the portfolio management techniques and wants to test one of the techniques

on an equity fund she has constructed and compare the gains and losses from

the technique with those from a passive buy and hold strategy. The fund

consists of equities only and the ending NAVs of the fund he constructed for

the last 10 months are given below:

Month Ending NAV

(Rs./unit)

Month Ending NAV

(Rs./unit)

December 2008 40.00 May 2009 37.00

January 2009 25.00 June 2009 42.00

February 2009 36.00 July 2009 43.00

March 2009 32.00 August 2009 50.00

April 2009 38.00 September 2009 52.00

Assume Sunidhi had invested a notional amount of Rs.2 lakhs equally in

the equity fund and a conservative portfolio (of bonds) in the beginning of

December 2008 and the total portfolio was being rebalanced each time the

NAV of the fund increased or decreased by 15%.

You are required to determine the value of the portfolio for each level of

NAV following the Constant Ratio Plan.

Solution

Stock

Port-

Folio

NAV

Value of

buy-

hold

Strategy

(Rs.)

Value of

Conservative

Portfolio

(Rs.)

Value of

aggressive

Portfolio

(Rs.)

Total

value of

Constand

Ratio Plan

(Rs.)

Revaluation

Action

Total No.

of units in

Aggressive

portfolio

40.00 2,00,000 1,00,000 1,00,000 2,00,000 - 2500

25.00 1,25,000 1,00,000 62,500 1,62,500 - 2500

1,25,000 81,250 81,250 1,62,500 Buy 750 units 3250

9 SFM - COMPILER

36.00 1,80,000 81,250 1,17,000 1,98,250 - 3250

1,80,000 99,125 99,125 1,98,250 Sell 496.53 2753.47

32.00 1,60,000 99,125 88,111.04 1,87,236.04 - 2753.47

38.00 1,90,000 99,125 1,04,631.86 2,03,756.86 - 2753.47

1,90,000 1,01,878.43 1,01,878.43 2,03,756.86 Sell 72.46 2681.01

37.00 1,85,000 1,01,878.50 99,197.37 2,01,075.87 - 2681.01

42.00 2,10,000 1,01,878.50 1,12,602.42 2,14,480.92 - 2681.01

43.00 2,15,000 1,01,878.50 1,15,283.43 2,17,161.93 - 2681.01

50.00 2,50,000 1,01,878.50 1,34,050.50 2,35,929 - 2681.01

2,50,000 1,17,964.50 1,17,964.50 2,35,929 Sell 321.72 2359.29

52.00 2,60,000 1,17,964.50 1,22,683.08 2,40,647.58 - 2356.29

Hence, the ending value of the mechanical strategy is Rs.2,40,647.58 and

buy & hold strategy is Rs.2,60,000.

Question 7 : May 2010 Paper – 6 Marks

Based on the following information, determine the NAV of a regular

income scheme on per unit basis:

Rs.Crores

Listed shares at Cost (ex-dividend) 20

Cash in hand 1.23

Bonds and debentures at cost 4.3

Of these, bonds not listed and quoted 1

Other fixed interest securities at cost 4.5

Dividend accrued 0.8

Amount payable on shares 6.32

Expenditure accrued 0.75

Number of units (Rs.10 face value) 20 lacs

Current realizable value of fixed income securities of

face value of Rs.100

106.5

The listed shares were purchased when Index was 1,000

Present index is 2.300

Value of listed bonds and debentures at NAV date 8

There has been a diminution of 20% in unlisted bonds and debentures.

Other fixed interest securities are at cost.

Solution

Particulars Adjustment Value

Rs.crores

Equity Shares 46.00

10 SFM - COMPILER

Cash in hand 1.23

Bonds and debentures not listed (1 – 0.20) 0.80

Bonds and debentures listed 8.00

Dividends accrued 0.80

Fixed income securities 4.50

Sub total assets (A) 61.33

Less: Liabilities



Sub total liabilities (B) 7.07

Net Assets Value (A) – (B) 54.26

No of units 20,00,000

Net Assets Value per unit (Rs.54.26 crore / 20,00,000) Rs.271.30

Question 8 : Nov 2010 RTP

Mr. X, an investor purchased 200 units of ABC Mutual Fund at rate of

Rs.8.50 p.u., one year ago. Over the year Mr. X received Rs.0.90 as dividend

and had received a capital gains distribution of Rs.0.75 per unit.

You are required to find out:

Mr. X’s holding period return assuming that this no load fund has a NAV

of Rs.9.10 as on today.

Mr. X’s holding period return, assuming all the dividends and capital gains

distributions are reinvested into additional units as at average price of ` 8.75

per unit.

Solution

(a) Return for the year (all changes on a per unit basis):

Change in Price (Rs.9.10 - Rs.8.50) Rs.0.60

Dividends received Rs.0.90

Capital gains distributions Rs.0.75

Total return Rs.2.25

Holding period return = 2.25/8.50 = 26.47%

(b) When all dividends and capital gains distributions are reinvested into

additional units of the fund (Rs.8.75/unit):

Dividends and capital gains per unit: Rs.0.90 + Rs. 0.75 = Rs.1.65

Total amount received from 200 units: Rs.1.65 X 200 = Rs.330.00

Additional units added: ` 330/` 8.75 = 37.7 units

Value of 237.7 units held at end of year: 237.7 units X Rs. 9.10 = Rs.2,163

Price paid for 200 units at beginning of year 200 units X Rs. 8.50 = Rs.1,700

11 SFM - COMPILER

Thus, the Holding Period Return =

(No of Units at the end x Ending Price) – (No of units at Beg x Initial Prices)

No of Unis at the Beg xc Initial Price

= 2,163 – 1,700

1,700 x 100 = 27.24%

Question 9 : Nov 2010 RTP

Following is the historical performance information is available of the

capital market and a Tomplan Mutual Fund.

Year Tomplan

Mutual Fund

Beta

Tomplan

Mutual Fund

return %

Return on

Market

index%

Return on

Govt.

securities%

2001 0.90 –3.00 -8.50 6.50

2002 0.95 1.50 4.00 6.50

2003 0.95 18.00 14.00 6.00

2004 1.00 22.00 18.50 6.00

2005 1.00 10.00 5.70 5.75

2006 0.90 7.00 1.20 5.75

2007 0.80 18.00 16.00 6.00

2008 0.75 24.00 18.00 5.50

2009 0.75 15.00 10.00 5.50

2010 0.70 –2.00 8.00 6.00

(a) From above information you are required to calculate the following risk

adjusted return measures for the measures for the Tomplan:

(i) Reward-to-variability ratio

(ii) Reward-to-volatility ratio

(b) Comment on the mutual fund’s performance.

Solution

(1) Calculation of average of these four variables

Year Tomplan

Mutual

Fund Beta

Tomplan

Mutual

Fund return

%

Return on

market

index %

Return on

Govt.

securities

%

2001 0.90 –3.00 -8.50 6.50

2002 0.95 1.50 4.00 6.50

2003 0.95 18.00 14.00 6.00

2004 1.00 22.00 18.50 6.00

2005 1.00 10.00 5.70 5.75

2006 0.90 7.00 1.20 5.75

2007 0.80 18.00 16.00 6.00

2008 0.75 24.00 18.00 5.50

12 SFM - COMPILER

2009 0.75 15.00 10.00 5.50

2010 0.70 –2.00 8.00 6.00

Total 8.7 110.5 86.9 59.5

Average 0.87 11.05 8.69 5.95

Thus, the averages are as follows:

Mutual fund beta = 0.87

Mutual fund return = 11.05 per cent

Return on market index = 8.69 per cent

Return on Govt. securities = 5.95 per cent

(2) Standard deviation of returns of Tomplan Mutual fund

Year Mutual fund returns (X) 𝑿𝟐

1 –3.00 9.00

2 1.50 2.25

3 18.00 324.00

4 22.00 484.00

5 10.00 100.00

6 7.00 49.00

7 18.00 324.00

8 24.00 576.00

9 15.00 225.00

10 -2.00 4.00

Total 110.50 2097.25

σp = N∑x2 – (∑x)2

N 2 = 9.36

(3) Standard deviation of returns on the market index

Year Return on market index

(X) 𝑿𝟐

1 –8.50 72.25

2 4.00 16.00

3 14.00 196.00

4 18.50 342.25

5 5.70 32.49

6 1.20 1.44

7 16.00 256.00

8 18.00 324.00

9 10.00 100.00

10 8.00 64.00

Total 86.90 1404.43

13 SFM - COMPILER

σm = N∑X2 – (∑x)2

N 2 = 8.06

(a) (i) Reward to variability ratio or Sharpe ratio

For Tomplan Mutual Fund

SR =rp – rf

p =

11.05 – 5.95 9.36 = 0.545

For Market

SR = rp – rf

p =

8.69 – 5.95 8.06 = 0.34

(ii) Reward to volatility ratio or Treynor ratio

For Tomplan Mutual Fund

TR = rp – rf

p =

11.05 – 5.95 0.87 = 5.86

For Market

TR = rp – rf

p =

8.69 – 5.95 1 = 2.74

(b) Mutual fund performance

Ratios of the mutual fund and the market is as follows:

Ratio Mutual fund Market index

Sharpe ratio 0.545 0.34

Treynor ratio 5.86 2.74

Thus from above it is clear that the Tomplan Mutual fund has performed

better than the market.

2011

Question 10 - May 2011 Paper - 8 Marks

An investor purchased 300 units of a Mutual Fund at Rs.12.25 per unit on

31 st December, 2009. As on 31 st December, 2010 he has received Rs.1.25 as

dividend and Rs.1.00 as capital gains distribution per unit.

Required :

a. The return on the investment if the NAV as on 31 st December, 2010 is

Rs.13.00.

b. The return on the investment as on 31st December, 2010 if all dividends

and capital gains distributions are reinvested into additional units of the

fund at Rs.12.50 per unit.

14 SFM - COMPILER

Solution

i) Payout Plan



HPY = 1.25 + 1 + 0.75

12.25 = 24.49 % P.A

ii) Reinvestment Plan

Amount Reinvested = (1.25 + 1) x 300 units = 675

Units at the beginning = 300 units

No of units Received = 675

12.50 = 54 units

Total Units = 300 + 54 units = 354 units

Return = 354 x 13 - 300 x 12.25

300 x 12.25 = 25.22% P.A

Decision : Dividend Reinvestment Plan is better than dividend payout Plan

Question 11 Nov RTP – Nov 2011 RTP

1. April 2009 Fair Return Mutual Fund has the following assets and prices at

4.00st 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 fund 8,00,000

Please calculate :

1. NAV of the Fund.

2. Assuming Mr. X, a HNI, send a cheque of ` 50,00,000 to the Fund and

Fund Manager purchases 18000 shares of C Ltd. and balance is held in

bank. Then what will be position of fund.

3. Now suppose on 2 April 2009 at 4.00 p.m. the market price of shares is as

follows :

Shares Rs.

A Ltd. 20.30

B Ltd. 513.70

C Ltd. 290.80

D Ltd. 671.90

ELtd. 44.20

15 SFM - COMPILER

Then what will be new NAV.

Solution

1) NAV on 1st April 2009

Stocks Value

A

B

C

D

E

10,000 x 19.70

50,000 x 482.60

10,000 x 264.40

1,00,000 x 674.90

30,000 x 25.90

1,97,000

2,41,30,000

26,44,000

6,74,90,000

7,77,000

Total 9,52,38,000

NAV = 9,52,38,000

8,00,000 = Rs.119.0475 per unit

2) Revised Fund Position

Cheque of Rs.50,00,000 from Mr. A which was invested in 18000 shares

in C Ltd.

Value of shares in C Ltd. = 18000 x 264.40 = 47,59,200

Cash (50,00,000 – 47,59,200) = Rs.2,40,800

Total Fund Value = Rs.9,52,38,000 + Rs.50,00,000 = Rs.10,02,38,000

Units Issued = 50,00,000 119.0475 = 42,000 units

Total Units = 8,00,000 + 42,000 = 8,42,000

NAV = 10,02,38,000

8,42,000 = Rs.119.0475 per unit

3) NAV on 2nd April 2009

Stocks Value

A

B

C

D

E

Cash

10,000 x 20.30

50,000 x 513.70

28,000 x 290.80

1,00,000 x 671.90

30,000 x 44.20

2,03,000

2,56,85,000

81,42,400

6,71,90,000

13,26,000

2,40,800

Total 10,27,87,200

NAV = 10,27,87,200

8,42,000 = Rs.122.08 per unit

16 SFM - COMPILER

Question 12 Nov 2011 Paper – 5 Marks

Orange purchased 200 units of Oxygen Mutual Fund at Rs.45 per unit on

31st December, 2009. In 2010, he received Rs.1.00 as dividend per unit and a

capital gains distribution of Rs.2 per unit. Required:

i. Calculate the return for the period of one year assuming that the NAV as

on 31st December 2010 was Rs. 48 per unit.

ii. Calculate the return for the period of one year assuming that the NAV as

on 31st December 2010 was Rs.48 per unit and all dividends and capital

gains distributions have been reinvested at an average price of ` 46.00 per

unit.

Ignore taxation.

Solution

(i) Returns for the year

(All changes on a Per -Unit Basis)

Change in Price: 48 – 45 Rs.3.00

Dividends received: Rs.1.00

Capital gains distribution Rs.2.00

Total reward Rs.6.00

Holding period reward: 6

45 x 100 13.33%

(ii) When all dividends and capital gains distributions are re-invested into

additional units of the fund @ (Rs.46/unit)

Dividend + Capital Gains per unit =Rs.1.00+Rs.2.00 = Rs.3.00

Total received from 200 units = Rs.3.00 x 200 = Rs.600

Additional Units Acquired = 600

46 =13.04 Units.

Total No.of Units = 200 units + 13.04 units = 213.04 units.

Value of 213.04 units held at the end of the year

= 213.04 units x Rs.48 = Rs.10225.92

Price Paid for 200 Units at the beginning of the year

= 200 units x Rs.45 = Rs.9000.00

Thus, the Holding Period Return would be:

= (No of Units at the end x Ending Price) – (No of units at Beg x Initial Price)

(No of Units at the Beg x Initital Price)

= 1,225.92 – 9,000

9,000 x 100 = 13.62%

17 SFM - COMPILER

2012

Question 13 May 2012 RTP – Similar to - Question 9 : Nov 2010 RTP

Question 14 May 2012 Paper

A Mutual Fund Co. has the following assets under it on the close of

business as on:

Company No. of

Shares

1st February 2012

Market price per

share (Rs)

2nd February, 2012

Market price per

share (Rs)

L Ltd. 20,000 20.00 20.50

M Ltd. 30,000 312.40 360.00

N Ltd. 20,000 361.20 383.10

P Ltd. 60,000 505.10 503.90

Total No. of Units 6,00,000

i. Calculate Net Assets Value (NAV) of the Fund.

ii. Following information is given :

Assuming one Mr. A, submits a cheque of Rs.30,00,000 to the Mutual

Fund and the Fund manager of this company purchases 8,000 shares of

M Ltd; and the balance amount is held in Bank. In such a case, what would

be the position of the Fund?

iii. Find new NAV of the Fund as on 2nd February 2012.

Solution

1) NAV on 1st Feb 2012

Stocks Value

L

M

N

P

20,000 x 20

30,000 x 312.40

20,000 x 361.20

60,000 x 505.10

4,00,000

93,72,000

72,24,000

3,03,06,000

Total 4,73,02,000

NAV = 4,73,02,000

6,00,000 = Rs.78.8367 per unit

2) Revised Fund Position

Cheque of Rs.30,00,000 from Mr. A which was invested in 8000 shares in

M Ltd.

Value of shares in M Ltd. = 8000 x 312.40 = 24,99,200

Cash (30,00,000 – 24,99,200) = Rs.5,00,800

Total Fund Value = 4,73,02,000 + 30,00,000 = 5,03,02,000

18 SFM - COMPILER

Units Issued = 30,00,000 78.8367 = 38,053.34 units

Total Units = 6,00,000 + 38,053.34 = 6,38,053.34

NAV = 5,03,02,000 6,38,053.34 = Rs.78.8367 per unit

3) NAV on 2nd Feb 2012

Stocks Value

L

M

N

P

Cash

20,000 x 20.50

38,000 x 360

20,000 x 383.10

60,000 x 503.90

4,10,000

1,36,80,000

76,62,000

3,02,34,000

5,00,800

Total 5,24,86,800

NAV = 5,24,86,800 6,38,053.34 = Rs.82.26 per unit

Question 15 Nov 2012 RTP – Similar to Question 1 – Nov 2008 – RTP

Question 16 Nov 2012 Paper – 5 Marks

The following information is extracted from Steady Mutual Fund’s Scheme:

- Asset Value at the beginning of the month - Rs.65.78

- Annualised return - 15 %

- Distributions made in the nature of Income - Rs.0.50 and Rs.0.32

& Capital gain (per unit respectively).

You are required to:

(1) Calculate the month end net asset value of the mutual fund scheme (limit

your answers to two decimals).

(2) Provide a brief comment on the month end NAV.

Solution

(1) Calculation of NAV at the end of month:

Given Annual Return = 15%

Hence Monthly Return = 1.25%

HPY = (NAV at end – NAV at beg) – Capital Dist + Capital Gain

Nav at Beg

0.0125 = (Nav at End – ` 65.78) + 0.50 + 0.32

65.78

Nav at End = Rs.65.78

(2) There are no change in NAV

19 SFM - COMPILER

2013

Question 17 May 2013 RTP

Mr. A can earn a return of 16 per cent by investing in equity shares on his

own. Now he is considering a recently announced equity based mutual fund

scheme in which initial expenses are 5.5 per cent and annual recurring

expenses are 1.5 per cent. How much should the mutual fund earn to provide

Mr. A return of 16 per cent?

Solution

Indifference Point between direct return from the Fund

R2 = R1

1 – Initial Expense + Re


R1 = Direct Return

Re = Recurring Expenses

In the above Question


R1 = 16%

Re = 1.5%

Initial Expenses = 5.5%

R2 = 16

1 – 0.055 + 1.5 = 18.43%

20 SFM - COMPILER

Question 18: May 2013 Paper – 10 Marks

Mr. Suhail has invested in three Mutual fund schemes as per details below:

Scheme X Scheme Y Scheme Z

Date of Investment 01.04.11 01.05.11 01.07.2011

Amount of Investment 12,00,000 4,00,000 2,50,000

Net Asset Value at entry date 10.25 10.15 10.00

Dividend received up to

31.07.2011

23,000 6,000 Nil

NAV as at 31.7.2011 10.20 10.25 9.90

You are required to calculate the effective yield on per annum basis in

respect of each of the three schemes to Mr. Suhail up to 31.07.2011.

Solution

MF A MF B MF C

Date of Investments 1/4/11 1/5/11 1/7/07

Amount of

Investment

12,00,000 4,00,000 2,50,000

NAV on entry Date 10.25 10.15 10

Units Received 12,00,000 10.25

= 1,17,073.17

4,00,000 10.15

= 39,408.86

2,50,000 10

= 25,000

Dividend Received 23,000 6,000 Nil

Dividend Per Unit 23,000 1,17,073 = 0.19645

6,000 39,408.86 = 0.15

Nil

NAV at 31/3/2007 10.2 10.25 9.90

Holding Period 4 months 3 months 1 month

HPY 0.19645 – 0.05 10.25 x 100

= 1.42878%

0.15 + 0.1 10.15 x 100

= 2.46%

–0.1 10 x 100

= 1%

MMY 1.42878 x 3 = 4.28463% 2.46 x 4 = 9.85% 1 x 12 = – 12%

EAY (1 + 0.0142878)3– 1

= 4.34787%

(1.0246)4 – 1

= 10.21%

(1.01)12 – 1

= – 12.6825%

21 SFM - COMPILER

Question 19 - May 2013 Paper – 8 Marks

On 1-4-2012 ABC Mutual Fund issued 20 lakh units at Rs.10 per unit.

Relevant initial expenses involved were Rs.12 lakhs. It invested the fund so

raised in capital market instruments to build a portfolio of Rs.185 lakhs. During

the month of April 2012 it disposed off some of the instruments costing Rs.60

lakhs for Rs.63 lakhs and used the proceeds in purchasing securities for Rs.56

lakhs. Fund management expenses for the month of April 2012 was Rs.8 lakhs

of which 10% was in arrears. In April 2012 the fund earned dividends

amounting to Rs.2 lakhs and it distributed 80% of the realized earnings. On 30-

4-2012 the market value of the portfolio was Rs.198 lakhs.

Mr. Akash, an investor, subscribed to 100 units on 1-4-2012 and disposed

off the same at closing NAV on 30-4-2012. What was his annual rate of earning?

Solution

Amount in Amount in Amount

lakhs lakhs lakhs

Opening Bank (200 - 185 -12) 3.00

Add: Proceeds from sale of

securities

63.00

Add: Dividend received 2.00 68.00

Deduct:

Cost of securities purchased 56.00

Fund management expenses

paid (90% of 8)

7.20

Capital gains distributed = 80%

of (63 – 60)

2.40

Dividend distributed =80% of

2.00

1.60 67.20

Closing Bank 0.80

Closing market value of

portfolio

198.00

198.80

Less: Arrears of expenses 0.80

Closing Net Assets 198.00

Number of units (Lakhs) 20

Closing NAV per unit 9.90

Rate of Earning (Per Unit)

Amount

Income received (2.40 + 1.60)/20 Rs.0.20

Loss: Loss on disposal (200 - 198)/20 Rs.0.10

Net earning Rs.0.10

Initial investment Rs.10.00

22 SFM - COMPILER

Rate of earning (monthly) 1%

Rate of earning (Annual) 12%

Question 20 -

Nov 2013 - RTP – Similar to - Question 15 - May 2012 Paper

Question 21: Nov 2013 Paper – 5 Marks

On 01-07-2010, Mr. X Invested Rs.50,000/- at initial offer in Mutual

Funds at a face value of ` 10 each per unit. On 31-03-2011, a dividend was paid

@ 10% and annualized yield was 120%. On 31-03-2012, 20% dividend and

capital gain of Rs.0.60 per unit was given.

Mr. X redeemed all his 6271.98 units when his annualized yield was

71.50% over the period of holding.

Calculate NAV as on 31-03-2011, 31-03-2012 and 31-03-2013. For

calculations consider a year of 12 months.

Solution

9 months 1 yr 1 Yr

1/7/2010 31/3/2011 31/3/2012 31/3/2013

Yield P.A 120% ? 71.50%

Units 5000 ? ? 6,271.98

Dividend NA 10% 20% NIL

(0.6 Capital Gain)

NAV 10 X Y

Z

Before we start calculation for NAV, first we need to understand that

investor is following dividend reinvestment plan because units are seen to be

increasing from 5,000 to 6,271.98 at the end of the period.

23 SFM - COMPILER

Calculation for First 9 months

Let the NAV on 31.3.2011 be X

Return from 1/7/2010 to 31.3.2011 (9 months) = 120 / 12 x 9 = 90%



90 = 1(10% of 10) + (X – 10)

10 x 100

Therefore X = 18

Dividend = 5,000 x 1 = 5,000

Amount Reinvested = 5,000

Units Received = 5,000 / 18 = 277.78 units

Total Units = 5,000 + 277.77 = 5,277.78

Calculation for First 1 yr

1 yr 1 Yr

31/3/2011 31/3/2012 31/3/2008

Units 5,277.78 ? 6,271.98

Dividend 10% 20% NIL

(0.6 Capital Gain)

NAV 18 Y

Z

Note : Units standing on 31/3/2012 would be the same as on 31/3/2013

because dividend was received on 31/3/2012 which would have been reinvested

and units would have increased.

Dividend Received = 5,277.78 x 10 x 20% = 10,555.56

Capital Gain = 5,277.78 x 0.6 = 3,166.668

Total Amount Reinvested = 10,555.56 + 3,166.668 = 13,722.228

Units added = 6,271.98 – 5,277.78 = 994.2

Amount at which it was reinvested, which would the NAV

= 13,722.228 / 994.2 = 13.80 NAV

24 SFM - COMPILER

Last 3 months

1 yrs

31/3/2012 31/3/2013

Yield P.A 71.50%

6,271.98 6,271.98

NIL

NAV 13.80 Z

Return = 71.50%

71.50 = Z – 13.80

13.80 x 100

Z = 23.667

2014

Question 22: May 2013 RTP

A Mutual Fund having 300 units has shown its NAV of Rs.8.75 and Rs.9.45

at the beginning and at the end of the year respectively. The Mutual Fund has

given two options:

i. Pay Rs.0.75 per unit as dividend and Rs.0.60 per unit as a capital gain, or

ii. These distributions are to be reinvested at an average NAV of Rs.8.65 per

unit. What difference it would make in terms of return available and which

option is preferable?

Solution

i) Payout Plan



HPY = 0.75 + 0.60 + 0.70

8.75 = 23.43 % P.A

ii) Reinvestment Plan

Amount Reinvested = (0.75 + 0.60) x 300 units = 405

Units at the beginning = 300 units

No of units Received = 405 8.65 = 46.8208 units

Total Units = 300 + 46.8208 units = 346.8208 units

Return = 346.8208 x 9.45 - 300 x 8.75

300 x 8.75 = 24.86% P.A

Decision : Dividend Reinvestment Plan is better than dividend payout Plan

25 SFM - COMPILER

Question 23 : May 2014 Paper – 8 Marks

Based on the following data, estimate the Net Asset Value (NAV) on per unit

basis of a Regular Income Scheme of a Mutual Fund:

Rs. (in lakhs)

Listed Equity shares at cost (ex-dividend) 40.00

Cash in hand 2.76

Bonds & Debentures at cost of these, Bonds not listed 8.96

& not quoted 2.50

Other fixed interest securities at cost 9.75

Dividend accrued 1.95



Current realizable value of fixed income securities of face value of Rs.100 is

Rs.96.50.

Number of Units (Rs.10 face value each): 275000

All the listed equity shares were purchased at a time when market portfolio

index was 12,500. On NAV date, the market portfolio index is at 19,975.

There has been a diminution of 15% in unlisted bonds and debentures

valuation.

Listed bonds and debentures carry a market value of Rs.7.5 lakhs, on NAV date.

Operating expenses paid during the year amounted to Rs.2.24 lakhs.

Solution

Particulars Adjustment Value

Rs.lakhs

Equity Shares 63.920

Cash in hand 2.760

Bonds and debentures not listed 2.125

Bonds and debentures listed 7.500

Dividends accrued 1.950

Fixed income securities 9.409

Sub total assets (A) 87.664

Less: Liabilities



26 SFM - COMPILER

Sub total liabilities (B) 15.30

Net Assets Value (A) – (B) 72.364

No. of units 2,75,000

Net Assets Value per unit (Rs.72.364 lakhs / 2,75,000) Rs.26.3142

Question 24 : Nov 2014 RTP – Similar to - Question 20 - May 2013

Paper – 8 Marks

Question 25 : Nov 2014 Paper – 4 Marks

Cinderella Mutual Fund has the following assets in Scheme Rudolf at the

close of business on 31st March, 2014.

Company No. of Shares Market Price Per Share

Nairobi Ltd. 25000 Rs.20

Dakar Ltd. 35000 Rs.300

Senegal Ltd. 29000 Rs.380

Cairo Ltd. 40000 Rs.500

The total number of units of Scheme Rudolf are 10 lacs. The Scheme

Rudolf has accrued expenses of Rs.2,50,000 and other liabilities of

Rs.2,00,000. Calculate the NAV per unit of the Scheme Rudolf.

Solution

Shares No of Shares Price Amount (`)

Nairobi Ltd.

Dakar Ltd.

Senegal Ltd.

Cairo Ltd.

25,000

35,000

29,000

40,000

20

300

380

500

5,00,000

1,05,00,000

1,10,20,000

2,00,00,000

Less : Accrued Expenses

Other Liabilities

Total Value

No of Units

NAV Per unit (4,15,70,000 / 10,00,000)

4,20,20,000

2,50,000

2,00,000

4,15,70,000

10,00,000

41,57

2015

Question 26 - May 2015 Paper – Similar to - Question 1 – Nov 2008

– RTP

Question 27 – Nov 2015 Paper – 8 Marks – Similar to - Question 2 -

May 2009 - RTP

27 SFM - COMPILER

Question 28 Nov 2005 – 12 Marks

Note : This question is inserted because author feels this is important for

students to solve – Thanks

Sun Moon Mutual Fund (Approved Mutual Fund) sponsored open-ended

equity oriented scheme "Chanakya Opportunity Fund". There were three plans

viz. 'A'- Dividend Re-investment Plan, 'B' - Bonus Plan & 'C'- Growth Plan.

At the time of Initial Public Offer on 1-4-1995, Mr. Anand, Mr. Bachhan &

Mrs. Charu, three investors invested Rs. 1,00,000 each and chose 'B', 'C' & 'A'

Plan respectively.

The History of the Fund is as follows :

Date Dividend

(%)

Bonus Net Asset Value per Unit

Ratio (FV Rs, 10)

Plan A Plan B Plan C

28-07-1999 20 30.70 31.40 33.42

31-03-2000 70 5:4 58.42 31.05 70.05

31-10-2003 40 42.18 25.02 56.1$

15-03-2004 25 44.45 29.10 64.28

31-03-2004 1:3 42.18 20.05 60.12

24-03-

2005

40 1:4 48.10 19.95 72.40

31-07-2005 53.75 22.98 82.07

On 31 st July all three investors redeemed all the balance units. Calculate

annual rate of return to each of the investors.

Consider:

a. Long-term Capital Gain is exempt from Income tax.

b. Short-term Capital Gain is subject to 10% Income tax.

c. Security Transaction Tax 0.2 percent only on sale/redemption of units.

d. Ignore Education Cess.

Solution

Plan A – Dividend Reinvestment Plan

Date NAV Dividend

Amount

Units

Received

Cumulative

Units Held

1/4/95

28/7/99

31/3/2000

30/10/2003

15/3/2004

10

30.7

58.42

42.18

44.45

-

20,000

74,560

47,711

32,647.20

10,000

651.47

1276.28

1131.13

702.85

10,000

10,651.47

11,927.75

13,058.88

13,761.73

28 SFM - COMPILER

24/03/2005 48.10 55,046.92 1144.43 14,906.16

Redemption Price = 53.75 – 0.2% = 53.6425

Redemption Proceeds = 14,906.16 x 53.6425 = 7,99,604

- short term Capital Gain tax @10%

1144.43 (53.64 – 48.10) 634

Net Realization 7,98,970

Return = 1,00,000 = 7,98,970

(1 + r)124

12

Return =

7,98,970 3

31

1,00,000 – 1 = 22.28%

Plan B – Bonus Plan

Date Bonus Units Purchased Cumulative Units

Held

1/4/99

31/3/2000

31/3/2004

24/3/2005

-

5 : 4

1 : 3

1 : 4

10,000

12,500

7,500

7,500

10,000

22,500

30,000

37,500


Redemption Proceeds = 37,500 x 22.93 = 8,60,027

– short term Capital Gain tax @10%

7,500 (22.93 – Nil) 17,198


Return 1,00,000 = 8,42,829

(1 + r)124

12

Return =

8,42,829 3

31

1,00,000 – 1 = 22.92%

Plan C – Growth Plan


Redemption Proceeds = 10,000 x 81.90586 = 8,19,059

– short term Capital Gain tax @10% NIL


29 SFM - COMPILER

Return 1,00,000 = 8,19,059

(1 + r)124

12

Return =

8,19,059 3

31

1,00,000 – 1 = 22.58%

Question 29 Nov 2015 – Paper

Mr. X on 1.7.2012, during the initial public offer of a Mutual Fund (MF) invested Rs.1,00,000 at Face Value of Rs.10. On 31.3.2013, the MF declared a dividend of 10% when Mr. X calculated that his holding period return was 115%. On 31.3.2014, MF again declared a dividend of 20%. On 31.3.2015, Mr. X redeemed all his investment which had accumulated to 11,296.11 units when his holding period return was 202.17%. Calculate the NAVs as on 31.03.2013, 31.03.2014 and 31.03.2015. Solution Yield for 9 months = 115% Market value of Investments as on 31.03.2013 = 1,00,000/- + (1,00,000x 115%) = Rs.2,15,000/- Therefore, NAV as on 31.03.2013 = (2,15,000-10,000)/10,000

= Rs.20.50 (NAV would stand reduced to the extent of dividend payout, being (Rs.100,000 x 10%) = Rs.10,000) Since dividend was reinvested by Mr. X, additional units acquired

= 10,000

20.50 = 487.80 units

Therefore, units as on 31.03.2013 = 10,000+ 487.80 = 10,487.80 [Alternately, units as on 31.03.2013 = (2,15,000/20.50) = 10,487.80] Dividend as on 31.03.2014 = 10,487.80 x 10 x 0.2

= Rs.20,975.60

Let X be the NAV on 31.03.2014, then number of new units reinvested will be Rs.20,975.60/X. Accordingly 11296.11 units shall consist of reinvested units and 10487.80 (as on 31.03.2013). Thus, by way of equation it can be shown as follows:

11296.11 = 20975.60

X + 10487.80

Therefore, NAV as on 31.03.2014 = 20,975.60/(11,296.11- 10,487.80)

= Rs.25.95

NAV as on 31.03.2015 = Rs.1,00,000 (1+2.0217)/11296.11 = Rs.26.75

30 SFM - COMPILER

Question 30 Nov 2015 – Paper – 8 Marks

On 1st April, an open ended scheme of mutual fund had 300 lakh units outstanding with Net Assets Value (NAV) of Rs.18.75. At the end of April, it issued 6 lakh units at opening NAV plus 2% load, adjusted for dividend equalization. At the end of May, 3 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, the following additional information are

available: Rs.in lakhs Portfolio value appreciation Income of April Income for May Income for June

425.47 22.950 34.425 45.450

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. Solution Calculation of Income available for Distribution

Units (Lakh)

Per Unit (Rs.)

Total (Rs.in lakh)

Income from April Add: Dividend equalization collected on issue

300 6

0.0765 0.0765

0.0765 0.1125

22.9500 0.4590

Add: Income from May

306 23.4090 34.4250

Less: Dividend equalization paid on repurchase

306 3

0.1890 0.1890

57.8340 (0.5670)

Add: Income from June

303 0.1890 0.1500 0.3390 0.2373

57.2670 45.4500

Less: Dividend Paid

303 102.7170 (71.9019)

303 0.1017 30.8151 Calculation of Issue Price at the end of April

Rs. Opening NAV Add: Entry load 2% of Rs.18.750

18.750 (0.375)

Add: Dividend Equalization paid on Issue Price

19.125 0.0765

19.2015

Calculation of Repurchase Price at the end of May

Rs. Opening NAV Less: Exit load 2% of Rs.18.750

18.750 (0.375)

18.375

31 SFM - COMPILER

Add: Dividend Equalization paid on Issue Price 0.1890 18.564

Closing NAV

Rs.(Lakh) Opening Net asset value (Rs.18.75 x 300) Portfolio Value Appreciation Issue of Fresh Units (6 x 19.2015) Income Received (22.950 + 34.425 + 45.450)

5625.0000 425.4700 115.2090 102.8250

Less: Units repurchased (3 x 18.564) Income Distributed

-55.692

-71.9019

6268.504

(-127.5939) Closing Net Asset Value 6140.9101 Closing Units (300 + 6 - 3) lakh Closing NAV as on 30th June ؞

303 lakh Rs.20.2670

Question 31 May 2016 – RTP

Orange purchased 200 units of Oxygen Mutual Fund at Rs.45 per unit on 31st December,2009. In 2010, he received Rs.1.00 as dividend per unit and a capital gains distribution of Rs.2 per unit. Required: (i) Calculate the return for the period of one year assuming that the NAV

as on 31st December 2010 was Rs.48 per unit. (ii) Calculate the return for the period of one year assuming that the NAV

as on 31st December 2010 was Rs.48 per unit and all dividends and capital gains distributions have been reinvested at an average price of Rs.46.00 per unit.

Ignore taxation.

Solution

(i) Returns for the year (All changes on a Per -Unit Basis) Change in Price: Rs.48 – Rs.45 = Rs.3.00 Dividends received: Rs.1.00 Capital gains distribution Rs.2.00 Total reward Rs.6.00

Holding period reward: 6.00

45 x 100 = 13.33%

(ii) When all dividends and capital gains distributions are re-invested into

additional units of the fund @ (Rs.46/unit) Dividend + Capital Gains per unit = Rs.1.00 + Rs.2.00 = Rs.3.00 Total received from 200 units = Rs.3.00 x 200 = Rs.600/- Additional Units Acquired = 600/46

= 13.04 Units. Total No. of Units = 200 + 13.04

= 213.04 units. Value of 213.04 units held at the end of the year

= 213.04 units x Rs.48 = Rs.10225.92

32 SFM - COMPILER

Price Paid for 200 Units at the beginning of the year = 200 units x Rs.45 = Rs.9000.00

Holding Period Reward Rs.(10225.92 – 9000.00) = Rs.1225.92

Holding Period Reward = 𝟏𝟐𝟐𝟓.𝟗𝟐

𝟗𝟎𝟎𝟎 x 100 = 13.62%

Question 32 May 2016 – Paper – 6 Marks

Calculate the NAV of a regular income scheme on per unit basis of Red Bull

mutual fund from the following information:

Particulars Rs.in crores Listed shares at cost (ex - dividend) Cash in hand Bonds & Debentures at cost (ex - interest) Of these, bonds not listed & not quoted Other fixed interest securities at cost Dividend accrued Amount payable on shares Expenditure accrued Value of listed bonds & debentures at NAV date

30 0.75 2.30

1.0 2.50

0.8 8.32 1.00

10 Number of units (Rs.10 face value) 30 lakhs Current realizable value of fixed income securities of face value of Rs.100 is 106.50 The listed shares were purchased when index was 7100 and the Present index is 9000

Unlisted bonds and debentures are at cost. Other fixed interest securities are

also at cost.

Solution

Particulars Adjusted Value Rs. crores

Equity shares (30 x 9000/7100) Cash in hand Bonds & Debentures not listed Bonds & Debentures listed Dividend accrued Fixed income securities

38.028 0.75 1.00

10.00 0.80 2.50

Sub total assets (A) 53.078 Less: Liabilities Amount payable on shares Expenditure accrued

8.32 1.00

Sub total liabilities (B) 9.32 Net assets value (A) – (B) 43.758 No. of units Net assets value per unit (43.758 crore/30,00,000)

30,00,000 Rs.145.86

33 SFM - COMPILER


Based on the following data, estimate the Net Asset Value (NAV) on per unit

basis of a Regular Income Scheme of a Mutual Fund on 31-3-2015:

Rs. (in lakhs) Listed Equity shares at cost (ex-dividend) Cash in hand (As on 1-4-2014) Bonds & debentures at cost of these, Bonds not listed & not quoted Other fixed interest securities at cost Dividend accrued Amount payable on shares Expenditure accrued

40.00 5.00 8.96 2.50 9.75 1.95

13.54 1.76

Current realizable value of fixed income securities of face value of Rs.100 is Rs.96.50. Number of Units (Rs.10 face value each): 275000 All the listed equity shares were purchased at a time when market portfolio index was 12,500. On NAV date, the market portfolio index is at 19,975. There has been a diminution of 15% in unlisted bonds and debentures valuation.

Listed bonds and debentures carry a market value of Rs.7.5 lakhs, on NAV date.

Operating expenses paid during the year amounted to Rs.2.24 lakhs.

Solution

Particulars Adjusted Value Rs. crores

Equity shares Cash in hand (5.500 – 2.240) Bonds & Debentures not listed Bonds & Debentures listed Dividend accrued Fixed income securities

63.920 2.760 2.125 7.500 1.950 9.409

Sub total assets (A) 87.664 Less: Liabilities Amount payable on shares Expenditure accrued

13.65

1.76 Sub total liabilities (B) 15.30 Net assets value (A) – (B) 72.364 No. of units Net assets value per unit (72.364 lakhs/2,75,000)

2,75,000 Rs.26.3142

34 SFM - COMPILER


Mr. Abhishek is interested in investing Rs.2,00,000 for which he is considering following three alternatives: (i) Invest Rs.2,00,000 in Mutual Fund X (MFX) (ii) Invest Rs.2,00,000 in Mutual Fund Y (MFY) (iii) Invest Rs.1,20,000 in Mutual Fund X (MFX) and ` 80,000 in Mutual

Fund Y (MFY) Average annual return earned by MFX and MFY is 15% and 14% respectively. Risk free rate of return is 10% and market rate of return is 12%. Covariance of returns of MFX, MFY and market portfolio Mix are as follow:

MFX MFY Mix MFX 4.800 4.300 3.370 MFY 4.300 4.250 2.800 M 3.370 2.800 3.100 You are required to calculate: (i) variance of return from MFX, MFY and market return, (ii) portfolio return, beta, portfolio variance and portfolio standard

deviation, (iii) expected return, systematic risk and unsystematic risk; and

(iv) Sharpe ratio, Treynor ratio and Alpha of MFX, MFY and Portfolio Mix

Solution

(i) Variance of Returns

𝐂𝐨𝐫𝐢,𝐣 = 𝐂𝐨𝐯 (𝐢.𝐣)

𝛔𝐢𝛔𝐣

Accordingly, for MFX

1 = 𝐂𝐨𝐯 (𝐗,𝐗)

𝛔𝐗𝛔𝐗

𝛔𝐱𝟐 = 4.800

Accordingly, for MFY

1 = 𝐂𝐨𝐯(𝐘,𝐘)

𝛔𝐘𝛔𝐘

𝛔𝐲𝟐 = 4.250

Accordingly, for Market return

1 = 𝐂𝐨𝐯 (𝐌,𝐌)

𝛔𝐌𝛔𝐌

𝛔𝐌𝟐 = 3.100

35 SFM - COMPILER

(ii) Portfolio return, beta, variance and standard deviation

Weight of MFX in portfolio = 𝟏,𝟐𝟎,𝟎𝟎𝟎

𝟐,𝟎𝟎,𝟎𝟎𝟎 = 0.60

Weight of MFY in portfolio = 𝟖𝟎,𝟎𝟎𝟎

𝟐,𝟎𝟎,𝟎𝟎𝟎 = 0.40

Accordingly Portfolio Return

0.60 × 15% + 0.40 × 14% = 14.60%

Beta of each Fund

β = 𝐂𝐨𝐯 (𝐅𝐮𝐧𝐝,𝐌𝐚𝐫𝐤𝐞𝐭)

𝐕𝐚𝐫𝐢𝐚𝐧𝐜𝐞 𝐨𝐟 𝐌𝐚𝐫𝐤𝐞𝐭

𝛃𝐗= 𝟑.𝟑𝟕𝟎

𝟑.𝟏𝟎𝟎 = 1.087

𝛃𝐘 = 𝟐.𝟖𝟎𝟎

𝟑.𝟏𝟎𝟎 = 0.903

Portfolio Beta 0.60 x 1.087 + 0.40 x 0.903 = 1.013 Portfolio Variance

σXY2 = WX

2σX2 +WY

2σY2 + 2WXWYCOVX.Y

= (0.60)2 (4.800) + (0.40)2 (4.250) + 2(0.60) (0.40) (4.300) = 4.472 Or Portfolio Standard Deviation

σXY = √4.472 = 2.115

(iii) Expected Return, Systematic and Unsystematic Risk of Portfolio

Portfolio Return = 10% + 1.0134(12% - 10%) = 12.03% MF X Return = 10% + 1.087(12% - 10%) = 12.17% MF Y Return = 10% + 0.903(12% - 10%) = 28.06%

Systematic Risk = β2σ2 Accordingly, Systematic Risk of MFX = (1.087)2 x 3.10 = 3.663 Systematic Risk of MFY = (0.903)2 x 3.10 = 2.528 Systematic Risk of Portfolio = (1.013)2 x 3.10 = 3.181 Unsystematic Risk = Total Risk – Systematic Risk Accordingly,

36 SFM - COMPILER

Unsystematic Risk of MFX = 4.80 – 3.663 = 1.137 UnSystematic Risk of MFY = 4.250 – 2.528 = 1.722

UnSystematic Risk of Portfolio = 4.472 – 3.181 = 1.291

(iv) Sharpe and Treynor Ratios and Alpha

Sharpe Ratio

MFX = 𝟏𝟓%−𝟏𝟎%

√𝟒.𝟖𝟎𝟎 = 2.282

MFY = 𝟏𝟒%−𝟏𝟎%

√𝟒.𝟐𝟓𝟎 = 1.94

Portfolio = 𝟏𝟒.𝟔%−𝟏𝟎%

𝟐.𝟏𝟏𝟓 = 2.175

Treynor Ratio

MFX = 𝟏𝟓%−𝟏𝟎%

𝟏.𝟎𝟖𝟕 = 4.60

MFY = 𝟏𝟒%−𝟏𝟎%

𝟎.𝟗𝟎𝟑 = 4.43

Portfolio = 𝟏𝟒.𝟔%−𝟏𝟎%

𝟏.𝟎𝟏𝟑𝟒 = 4.54

Alpha

MFX = 15% - 12.17% = 2.83% MFY = 14% - 11.81% = 2.19%

Portfolio = 14.6% - 12.03% = 2.57%

Question 35 - May 2017 – RTP – Similar to - Question 5 - Nov 2009

Paper

37 SFM - COMPILER


Based on the following data, estimate the Net Asset Value (NAV) 1st July 2016

on per unit basis of a Debt Fund:

Name of

Security

Face Valu

e Rs.

Purchase

Price Rs.

Maturity Date

No. of Securitie

s

Coupon Date(s)

Duration of

Bonds

10.71% GOI 2028

100 104.78 31st March, 2028

1,00,000 31st March 7.3494

10.% GOI 2023

100 100.00 31st March, 2023

50,000 31st March & 30th

September

5.086

9.5% GOI 2021

100 97.93 31st December,

2021

40,000 30th June & 31st

December

4.3949

8.5% SGL 2025

100 91.36 30th June, 2025

20,000 30th June 6.5205

Number of Units (Rs.10 face value each): 100000

All securities were purchased at a time when applicable Yield to Maturity

(YTM) was 10%. On NAV date, the required yield increased by 75 basis point

and Cash in hand and accrued expenses were Rs.6,72,800 and Rs.2,37,400

respectively.

Solution

Working Notes:

(i) Calculation of Interest Accrued

Name of Security Maturity Date Amount (Rs.)

10.71% GOI 2028 100 x 100000 x 10.71% x 3

12 2,67,750

10% GOI 2022 100 x 50000 x 10.00% x 3

12 1,25,000

Total 3,92,750

Note: Interests on two remaining securities shall not be considered as last

interest was paid on 30.06.2016

(ii) Valuation of Securities

Name of Security

Purchase Price Rs.

Duration of

Bonds

Volatility (+)/(-) Total Amount

(Rs.) 10.71% GOI 2028

1,04,78,000

7.3494 7.3494

1.10 × 0.75

= 5.0110

-5,25,053 99,52,947

38 SFM - COMPILER

10.% GOI 2023

50,00,000

5.086 5.086

1.05 × 0.75

= 3.6329

-1,81,645 48,18,355

9.5% GOI 2021

39,17,200

4.3949 4.3949

1.05 × 0.75

= 3.1392

-1,22,969 37,94,231

8.5% SGL 2025

18,27,200

6.5205 6,5205

1.10 × 0.75

= 4.4456

-81,230 17,45,970

2,03,11,503

Calculation of NAV

Particulars Rs.Crores Value of Securities as computed above Cash in Hand Interest accrued

2,03,11,503 6,72,800 3,92,750

Sub total assets (A) 2,13,77,053 Less: Liabilities Expenditure accrued

2,37,400

Sub total liabilities (B) 2,37,400 Net Assets Value (A) – (B) 2,11,39,653 No. of units Net Assets Value per unit (Rs.2,11,39,653/1,00,000)

1,00,000 Rs.211.40

39 SFM - COMPILER


SBI mutual fund has a NAV of Rs.8.50 at the beginning of the year. At the end of the year NAV increases to Rs.9.10. Meanwhile fund distributes Rs.0.90 as dividend and Rs.0.75 as capital gains. (i) What is the fund’s return during the year?

(ii) Had these distributions been re-invested at an average NAV of Rs.8.75

assuming 200 units were purchased originally? What is the return?

Solution

Return for the year (all changes on a per year basis)

Particulars Rs./unit Changes in price (Rs.9.10 – Rs.8.50) Dividend Received Capital gain Distribution

0.60 0.90 0.75

Total Return 2.25

Return on investment = 2.25

8.50 x 100 = 26.47%

If all dividends and capital gain are reinvested into additional units at Rs.8.75 per unit theposition would be. Total amount reinvested = Rs.1.65 x 200 = Rs.330

Additional units added = Rs.330

8.75 = 37.71 units

Value of 237.71 units at end of year = Rs.2,163.16 Price paid for 200 units in beginning of the year (200 x Rs.8.50) = Rs.1,700

Return = 𝐑𝐬.𝟐,𝟏𝟔𝟑.𝟏𝟔−𝐑𝐬.𝟏,𝟕𝟎𝟎

𝐑𝐬.𝟏,𝟕𝟎𝟎 =

𝐑𝐬.𝟒𝟔𝟑.𝟏𝟔

𝐑𝐬.𝟏,𝟕𝟎𝟎 = 27.24%

40 SFM - COMPILER


A reputed financial institution of the country floated a Mutual fund having a corpus of Rs.10 crores consisting of 1 crore units of Rs.10 each. Mr. Vijay invested Rs.10,000 for 1000 units of Rs.10 each on 1st July 2014. For the financial year ended 31st March 2015, the fund declared a dividend of 10% and Mr. Vijay found that his annualized yield from the fund was 153.33%. The mutual fund during the financial year ended 31st March 2016, declared a dividend of 20%. Mr. Vijay has reinvested the entire dividend in acquiring units of this mutual fund at its appropriate NAV. On 31st march 2017 Mr. Vijay redeemed all his balances of 1129.61 units when his annualized yield was 73.52%.

You are required to find out NAV as on 31st March 2015, 31st March 2016 and

31st March 2017.

Solution

Yield for 9 months = (153.33 x 9/12) = 115% Market value of Investments as on 31.03.2015 = 10,000+(10,000×115%)

= Rs.21,500/- Therefore, NAV as on 31.03.2015 = (21,500 - 1,000)/1,000

= Rs.20.50 NAV would stand reduced to the extent of dividend payout, being (1,000×10×10%) = Rs.1,000) Since dividend was reinvested by Mr. X, additional units acquired

= Rs.1,000

Rs.20.50 = 48.78 units

Therefore, units as on 31.03.2015 = 1,000+ 48.78 = 1048.78 [Alternately, units as on 31.03.2015 = (21,500/20.50) = 1048.78]

Dividend as on 31.03.2016 = 1048.78 x 10 x 0.2 = Rs.2,097.56

Let X be the NAV on 31.03.2016, then number of new units reinvested will be Rs.2097.56/X. Accordingly 1129.61 units shall consist of reinvested units and 1048.78 (as on 31.03.2015). Thus, by way of equation it can be shown as follows:

1129.61 = 2097.56

X + 1048.78

Therefore, NAV as on 31.03.2016 = 2097.56/(1,129.61- 1,048.78) = Rs.25.95

NAV as on 31.03.2017 = Rs.10,000 (1+0.7352x33/12)/1129.61 = Rs.26.75

41 SFM - COMPILER


On 1-4-2012 ABC Mutual Fund issued 20 lakh units at Rs.10 per unit. Relevant initial expenses involved were Rs.12 lakhs. It invested the fund so raised in capital market instruments to build a portfolio of Rs.185 lakhs. During the month of April 2012 it disposed off some of the instruments costing Rs.60 lakhs for Rs.63 lakhs and used the proceeds in purchasing securities for Rs.56 lakhs. Fund management expenses for the month of April 2012 were Rs.8 lakhs of which 10% was in arrears. In April 2012 the fund earned dividends amounting to Rs.2 lakhs and it distributed 80% of the realized earnings. On 30-4-2012 the market value of the portfolio was Rs.198 lakhs.

Mr. Akash, an investor, subscribed to 100 units on 1-4-2012 and disposed off

the same at closing NAV on 30-4-2012. What was his annual rate of earning?

Solution

Amount in Rs.lakhs

Amount in Rs.lakhs

Amount in Rs.lakhs

Opening Bank (200-185-12) Add: Proceeds from sale of securities Add: Dividend received Deduct: Cost of securities purchased Fund management expenses paid (90% of 8) Capital gains distributed = 80% of (63-60) Dividend distributed = 80% of 2.00 Closing Bank Closing market value of portfolio

3.00 63.00

2.00

56.00 7.20

2.40

1.60

68.00

67.20

0.80 198.00

Less Arrears of expenses

198.80 0.80

Closing Net Assets 198.00

Number of units (Lakhs) Closing NAV per unit (198.00/20)

20 9.90

Rate of Earning (Per Unit)

Amount

Income received (Rs.2.40+0Rs.1.60)/20 Loss: Loss on disposal (Rs.200 – Rs.198)/20

Rs.0.20 Rs.0.10

Net earnings Rs.0.10 Initial investment Rate of earning (Monthly) Rate of earning (Annual)

Rs.10.00 1%

12%

42 SFM - COMPILER


A mutual fund made an issue of 10,00,000 units of Rs.10 each on January 01,

2008. No entry load was charged. It made the following investments:

Particulars Amount

50,000 Equity shares of Rs.100 each @ Rs.160 7% Government Securities 9% Debentures (Unlisted) 10% Debentures (Listed)

80,00,000 8,00,000

5,00,0000 5,00,000

98,00,000 During the year, dividends of Rs.12,00,000 were received on equity shares. Interest on all types of debt securities was received as and when due. At the end of the year equity shares and 10% debentures are quoted at 175% and 90% respectively. Other investments are at par.

Find out the Net Asset Value (NAV) per unit given that operating expenses paid

during the year amounted to Rs.5,00,000. Also find out the NAV, if the Mutual

fund had distributed a dividend of Rs.0.80 per unit during the year to the unit

holders.

Solution

Particulars Rs.

Cash balance in the beginning (Rs.100 lakhs – Rs.98 lakhs) Dividend Received Interest on 7% Govt. Securities Interest on 9% Debentures Interest on 10% Debentues

2,00,000

12,00,000 56,000 45,000 50,000

(-) Operating expenses

15,51,000 5,00,000

Net cash balance at the end 10,51,000 Calculation of NAV Rs. Cash Balance 7% Govt. Securities (at par) 50,000 equity shares @ Rs175 each 9% Debentures (Unlisted) at cost 10% Debentures @ 90%

10,51,000 8,00,000

87,50,000 5,00,000 4,50,000

Total Assets 1,15,51,000 No. of Unit NAV per Unit

10,00,000 Rs.11.55

Calculation of NAV, if dividend of Rs.0.80 is paid – Net Assets (Rs.1,15,51,000 – Rs.8,00,000) Rs.1,07,51,000 No. of Units 10,00,000

NAV per unit Rs.10.75

43 SFM - COMPILER


The unit price of Equity Linked Savings Scheme (ELSS) of a mutual fund is Rs.10/-. The public offer price (POP) of the unit is Rs.10.204 and the redemption price is Rs.9.80. Calculate: (i) Front-end Load

(ii) Back end Load

Solution

i. Front End Load 10.204−10

10 × 100 = 2.04%

ii. Back End Load

10−9.8

10 × 100 = 2%


Mr. Y has invested in the three mutual funds (MF) as per the following details: Particulars MF ‘X’ MF ‘Y’ MF ‘Z’

Amount of Investment (Rs.) 2,00,000 4,00,000 2,00,000 Net Assets Value (NAV) at the time of purchase (Rs.)

10.30 10.10 10

Dividend Received up to 31.03.2018 (Rs.)

6,000 0 5,000

NAV as on 31.03.2018 (Rs.) 10.25 10 10.20 Effective Yield per annum as on 31.03.2018 (Percent)

9.66 -11.66 24.15

Assume 1 Year =365 days Mr. Y has misplaced the documents of his investment. Held him in finding the date of his original investment after ascertaining the following: (i) Number of units in each scheme; (ii) Total NPV; (iii) Total Yield; and (iv) Number of days investment held. Solution

Particulars MF ‘X’ MF ‘Y’ MF ‘Z’

1. No. of Units

= Amount

NAV

200000

10.30

= 19,417.475

400000

10.10

= 39,603.96

200000

10

= 20,000 2. Net Asset at End = Units × Closing NAV

19,417.475 × 10.25 = 1,99,029

39,603 × 10 = 3,96,040

20,000 × 10.2 = 2,04,000

3. Dividend Per Unit 6000

19417.475 = 0.309 NIL 5000

20000 = 0.25

4. Yield

Div.dist.+Capital App

Purchase Price × 100

(10.25−10.30)+0.309

10.30

× 100 = 2.515%

(10−10.10)

10.10 × 100

= 0.99%

(10.25−10)+0.25

10

× 100 = 4.5% 5. No of days investment held

2.515 ×365

𝑛 = 9.66

N = 95 days

0.99×365

𝑛= 11.66

N = 31 days

4.5 × 365

𝑛 = 24.15

N = 68 days

44 SFM - COMPILER

Question 43 - May 2018 (New) – RTP – Similar to - Question 28 - Nov

2005 – 12 Marks

Question 44 – May 2018 (New) – Paper - 10 marks – Similar t0 -

Question 14 - May 2012 - Paper

Question 45 – Nov 2018 – RTP – Similar to - Question 30 -Nov 2015

– Paper – 8 Marks


During the year 2017 an investor invested in a mutual fund. The capitaql gain

and dividend for the year was Rs.3.00 per unit, which were re-invested at the

year end NAV of Rs.23.75. The investor had a total units of 26,750 as at the end

of the year. The NAV had appreciated by 18.75% during the year and there was

an entry load of Rs.0.05 at the time when the investment was made.

The investor lost his records and wants to find out the amount of investment

made and the entry load in the mutual fund.

Solution

Closing NAV = 23.75 which is 118.75%

Opening NAV = 23.75/118.75% = 20

Entry Load = 0.05

Therefore Purchase Price = 20 + 0.05 = 20.05

Let the opening units be X

؞𝐱×𝟑

𝟐𝟑.𝟕𝟓 = 26,750 – x

3x = 6,35,312.5 – 23.75x؞

X = 23,750؞

Amount invested = 23,750 x 20.05 = Rs.4,76,187.5

Entry Load = 23,750 x 0.05 = Rs.1,187.5

45 SFM - COMPILER


A Mutual fund raised Rs.150 lakhs on April 1, 2018 by issue of 15 lakh units at

Rs.10 per unit. The fund invested in several capital market instruments to build

a portfolio of Rs.140 lakhs. The initial expenses amounted to Rs.8 lakhs. During

the month of April, the fund sold certain instruments costing Rs.44.75 lakhs for

Rs.47 lakhs and used the proceeds to purchase certain other securities for

Rs.41.6 lakhs. The fund management expenses for the month amounted to Rs.6

lakhs of which Rs.50,000 was in arrears. The fund earned dividends amounting

to Rs.1.5 lakhs and it distributed 80% of the realized earnings. The market value

of the portfolio on 30th April, 2018 was Rs.147.84 lakhs.

An investor subscribed to 1000 units on April 1 and disposed it off at closing

NAV on 30th April. Determine his annual rate of earnings.

Solution

Issue = 15 lakhs units x 10 = 150

Portfolio 140 Cash 10

Less: Sold (44.75) Less: Exp (8)

Add: Purch 41.6 Add: Sale 47

Balance 136.85 Less: Purchase (41.6)

Less: Exp (5.5)

Market Value 147.85 Add: Div 1.5

Less: Div

(1.5 x 80%) (1.2)

(2.25 x 80%) (1.8)

Balance 0.4

NAV at End = (𝟏𝟒𝟕.𝟖𝟓+𝟎.𝟒)−𝟎.𝟓

𝟏𝟓 = 9.85

HPY = 𝐃𝐢𝐯𝐢𝐝𝐞𝐧𝐝 𝐃𝐢𝐬𝐭𝐫𝐢𝐛𝐮𝐭𝐢𝐨𝐧+𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐆𝐚𝐢𝐧 𝐃𝐢𝐬𝐭𝐫𝐢𝐛𝐮𝐭𝐢𝐨𝐧+𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐀𝐩𝐩𝐫𝐞𝐜𝐢𝐚𝐭𝐢𝐨𝐧

𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐞 𝐏𝐫𝐢𝐜𝐞 x 100

Dividend Distribution = 𝟏.𝟐

𝟏𝟓 = 0.08 per unit

Capital gain distribution =𝟏.𝟖

𝟏𝟓 = 0.12 per unit

HPY = 𝟎.𝟎𝟖+𝟎.𝟏𝟐+(𝟗.𝟖𝟓−𝟏𝟎)

𝟏𝟎 x 100 = 0.5% per month

BEY = 0.5 x 𝟏𝟐

𝟏 = 6% P.A.

EAY (𝟏. 𝟎𝟎𝟓)𝟏𝟐 – 1 = 6.17% P.A.

46 SFM - COMPILER

Question 48 - Nov 2018 (New) – RTP – Similar to - Question 7 - May

2010 - Paper – 6 Marks

Question 49 - Nov 2018 – New – Paper – 8 Marks - Similar to –

Question no 22 – May 2013 RTP

Documents

SFM - COMPILERrahulmalkan.com/sm-admin/lib/Study/Mutual Funds .pdf4 SFM - COMPILER Return = 75.45% 75.45 = Z – 27.7478 27.7478 x 100 ... (NAV) per unit given that operating expenses