Rohit invested 18,000 in a Mutual Fund on 3rd April, 2008 with NAV of
75.1092 and entry load of 2.25% of the NAV. He sold all the units on
17th September, 2008 with NAV of 97.2516 without any exit load. Find
his total gain and rate of return.
Answers
Answer:
answer for this question is 26.63
Total gain of Rohit is Rs. 4793.54 and Rohit rate of return is 26.63.
Step-by-step explanation:
Given:
On 3rd April, 2008 Rs. Invested by Rohit is Rs.18000 NAV of75.1092 and entry load was 2.25% of the NAV.
Rohit sold all units on 17th September, 2008 with NAV of 97.2516 without any exit load.
To Find:
Total gain of Rohit and Rohit rate of return .
Formula Used:
Number of units purchased = Invested Amount/ Purchase price of one unit
Amount received = Redemption price per unit x Number of units purchased
Rate of Return =
Solution:
As given- on 3rd April, 2008 Rs. Invested by Rohit is Rs.18000 NAV of 75.1092 and entry load was 2.25% of the NAV.
Entry load =2.25% of NAV = 2.25% of 75.1092
=75.1092 x 2.25/100 = 1.69
Purchase price per unit = Entry load + NAV
= 1.69+75.1092 = Rs.76.7992
Number of units purchased = Invested Amount/ Purchase price of one unit = 18000/76.7992 = 234.377
As given- Rohit sold all units on 17th September, 2008 with NAV of 97.2516 without any exit load.
Redemption price per unit = NAV on 27 September, 2008 = Rs. 97.2516
Amount received = Redemption price per unit x Number of units purchased
Amount received = 97.2516 x 234.377 = Rs.22793.54
Total gain = Amount received – Amount invested
= 22793.54-1800 = Rs. 4793.54
Total gain = Rs. 4793.54
Rate of Return
= 26.63
Rate of Return= 26.63
Thus, Total gain of Rohit is Rs. 4793.54 and Rohit rate of return is 26.63.