Question

Scenario 1:
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​

Answer 1

Answer:

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.

Explanation:

Answer 2

Answer:

The Net asset value of this mutual fund scheme is Rs.11.

Given:

Mr. Ram and Mr. Prem pay 50,000 and 40,000 respectively. The net assets of the fund are 1,00,000 and the management charges are 500 and 400. The total no. of units is 8910.

Solution:

NAV= Net assets - liabilities/no. of units of the fund

       = 1,00,000 - (400+500)/ 8910

       = 99,100/8910

       = 11.12

Therefore, the NAV of this mutual fund is Rs. 11

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