Question

A fund's investments at market value total Rs.700 crores, Total liabilities stand at Rs.50 lacs and the number
of units outstanding is 28 Crores. What is the NAV?! [2 marks]
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Answer 1

Answer:

A fund's investments at market value total 700 crores, total liabilities stand at * 50 lakhs and the number of units outstanding is 28 crore.

Answer 2

Answer:

So, the NAV(Net Asset Value) = Rs. 24.98/Unit

Explanation:

Before answering this first we have to understand what is NAV(Net Asset Value)

The NAV(Net Asset Value) addresses the net worth of an entity and is determined as the absolute worth of the entity assets minus the total value of its liabilities.

NAV = $\frac{Market value of investment - Liabilities}{Number of units outstanding}$

        = $\frac{Rs. 700 Crore - 0.5 Crore}{28 Crore}$           [∴ Rs. 50 lacs = 0.5 Crore]

        = $\frac{700 - 0.5}{28}$

        =$\frac{699.5}{28}$

        = Rs. 24.98 / Unit

So, our NAV(Net Asset Value) = Rs. 24.98/Unit

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