Question

2. XYZ mutual fund had a net asset value of 10 at the beginning of a month, made income and
capital gain distribution of 0.05 and 0.02 respectively per unit during the month. The fund
ended the month with a net asset value of 10.08. The monthly rate of return of XYZ mutual
fund is
(a) 1.5%
(b) 1.9%
(c) 2.0%
(d) 2.2%​

Answer 1

Answer:

1.5%

Explanation:

Nav(t) = end of month

Nav(t-1) = beg of month

I= income

C= capital gain distribution

((10.08-10.00)+0.05+0.02) / 10

= 0.015= 1.5%