ABC Company provides a mutual fund to two customers, Mr. Ram and Mr. Prem. Mr. Ram pays Rs. 50,000 and Mr Prem pays Rs. 40,000. The management charges for both accounts are Rs. 500 and Rs. 400. The total number of units within the funds is 8,910.
The net assets of the fund are Rs. 1, 00,000. Find the fund's net asset value.
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Explanation:
Mr. Ram : (fund)
Equity = Rs. 50,000
Expenses = Rs. 500
Net assets = 50,000 - 500
= 49,500
Mr. Prem : (fund)
Equity = Rs. 40,000
Expenses = Rs. 400
Net assets = 40,000 - 400
= 39,600
NAV =
= (50,000 + 40,000) - 900 = 89,100
OR
= 49,500 + 39,600 = 89,100
The net assets of the fund are Rs. 1, 00,000.
= 89,100 + 1, 00,000
= 1,89,100
The total number of units within the funds is 8,910.
= 1,89,100/ 8,910
= 21.22
OR
((49,500+39,600+100,000))÷8,910
= 21.2233445567
= 21.22
NAV = 21.22
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