Mutual Fund (Additional Sums)

Q.1. Mr. Alex, a practicing Chartered Accountant, can earn a return of 15 per cent by investing in equity
shares on his own. He is considering a recently announced equity based mutual fund scheme in which
initial expenses are 6 per cent and annual recurring expenses are 2 per cent.
(i) How much should the mutual fund earn to provide Mr. Alex a return of 15 per cent per annum?
(ii) Mr. Alex's current Annual Professional Income is ` 40 Lakhs. His portfolio value is ` 50 Lakhs
and now he is spending 10% of his time to manage his portfolio. If he spends this time on
profession, his professional income will go up in same proportion. He is thinking to invest his
entire portfolio into a Multicap Fund, assuming the fund's NAV will grow at 13% per annum
(including dividend).
You are requested to advise Mr. Alex, whether he can invest the portfolio into Multicap Funds? If so,
what is the net financial benefit? (CA Final Nov. 2019)

Q.2. The following particulars relating to Vishnu Fund Schemes:

Particulars ` in Crores
1. Investment in Shares (at cost)
a. Pharmaceuticals companies 79
b. Construction Industries 31
c. Service Sector Companies 56
d. IT Companies 34
E. Real Estate Companies 10
2. Investment in Bonds (Fixed Income)
a. Listed Bonds (8000, 14% Bonds of ` 15,000 each) 12
b. Unlisted Bonds 7
3. No. of Units outstanding (crores) 4.2
4. Expenses Payable 3.5
5. Cash and Cash equivalents 1.5
6. Market expectations on listed bonds 8.842%

Particulars relating to each sector are as follows:

Sector Index on Purchase date Index on Valuation date
Pharmaceutical companies 260 465
Construction Industries 210 450
Service Sector Companies 275 480
IT Companies 240 495
Real Estate Companies 255 410
The fund has incurred the following expenses:
Consultancy and Management fees ` 480 Lakhs
Office Expenses ` 150 Lakhs
Advertisement Expenses ` 38 Lakhs

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 You are required to calculate the following:
(i) Net Asset Value of the fund
(ii) Net Asset Value per unit
(iii)If the period of consideration is 2 years, and the fund has distributed ` 3 per unit per year as cash
dividend, ascertain the Net return (Annualized).
(iv) Ascertain the Expenses ratio. (CA Final May 2019)

Q.3. Mr. D had invested in three mutual funds (MF) as per the following details:
Particulars MF ‘A’ MF ‘B’ MF ‘C’
Amount of Investment 2,00,000 5,00,000 4,00,000
NAV at the time of purchase 10.00 25.00 20.00
Dividend Yield up to 31.03.2023 3% 5% 4%
NAV as on 31.03.2023 10.50 22.80 20.80
Annualized Yield as on 31.03.2023 9.733% - 11.185% 15%
Assume 1 Year = 365 Days.
Mr. D has misplaced the documents of his investments. You are required to help Mr. D to find out the
following:
(i) Number of units allotted in each scheme,
(ii) Value of his investments as on 31.03.2023,
(iii) Holding period of his investments in number of days as on 31.03.2023
(iv) Dates of original investments
(v) Total Return on investments,
(vi) Assuming past performance of all three schemes will continue for next one year, what action the
investor should take? What will be the expected return for the next one year after above action?
(vii) Will your answer as above point no. (vi) changes if the Mutual fund charges exit load of 5% if
the investment is redeemed within one year? If so, advise the investor what and when the action
to be taken to optimise the returns. (CA Final May 2022)

Q.4. During the year 2023 an investor invested in a mutual fund. The capital gain and dividend for the year
was ` 3.00 per unit, which were reinvested at the year-end NAV of ` 23.75. The investor had total units
of 26,750 as at the end of the year. The NAV had appreciated by 18.75% during the year and there was
an entry load of ` 0.05 at the time when the investment was made.
The investor lost his records and wants to find out the amount of investment made and the entry load in
the mutual fund. (CA Final Nov. 2018)

Q.5. M/S. Corpus an AMC, on 1.04.2018 has floated two schemes viz. Dividend Plan and Bonus Plan. Mr.
X, an investor has invested in both the schemes. The following details (except the issue price) are
available:
NAV
Date Dividend (%) Bonus Ratio
Dividend Plan Bonus Plan
1.04.2018 ? ?
31.12.2019 1 :4 (One unit on 4 units held) 47 40
31.03.2020 12 48 42
31.03.2021 10 50 39
31.12.2021 1 :5 (One unit on 5 units held) 46 43
31.03.2022 15 45 42
31.03.2023 - - 49 44

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 Additional details
Investment (`) ` 9,20,000 ` 10,00,000
Average Profit (`) ` 27, 748.60
Average Yield (%) 6.40
You are required to calculate the issue price of both the schemes as on 1.04.2018.(CA Final Nov. 2020)

Q.6. A mutual fund made an issue of New Fund Offer (NFO) on 01/01/2022 of 10.00 Lakh Units of ` 10
each. No entry load was charged. It made the following investments:
Particulars (`)
25,000 Equity Shares of XYZ Ltd., ` 100 each @ ` 320 80,00,000
5% Government Securities 4,00,000
10% NCDs Unlisted 5,00,000
8% Listed Debentures 10,00,000
During the year, dividends of ` 8.00 lakhs were received on equity shares. Interest on all types of debt
securities were received. On 31st December 2022 equity shares were appreciated by 15% while listed
debentures were quoted at 20% premium.
XYZ Ltd., on 15th December 2022 in its AGM declared the interim dividend of 10% and bonus shares
at 1:10 with the record date of 28th December 2022.
(i) Find out the NAV per unit as on 31st December given that the operating expenses paid during the
year amounting to ` 3,00,000.
(ii) Find out the NAV, if the MF had distributed a dividend of, ` 0.50 per unit during the year to the
investors.
(iii)If you are the investor, find out what is the annualised return you have got. (CA Final May 2022)

Q.7. Based on the following information, estimate the NAV on per unit basis of a regular income scheme:
Particulars ` in lakhs
Listed equity shares at Cost (ex-dividend) 40.00
Cash in hand 2.76
Bonds and debentures at cost 8.96
Of these, bonds not listed and quoted 2.50
Other fixed interest securities at cost 9.75
Dividend accrued 1.95
Amount payable on shares 13.54
Expenditure accrued 1.76
Number of units (` 10 face value) 20 lacs
Additional Information:
Current realizable value of fixed income securities of face value of ` 100 ` 96.50
The listed shares were purchased when Index was 12,500
Present index is 19,975
Value of listed bonds and debentures at NAV date 8
There has been a diminution of 15% in unlisted bonds and debentures. Listed bonds and debentures
carry a market value of ` 7.5 lakhs, on NAV date. Operating expenses paid during the year amounted to
` 2.24 lakhs. Take decimal up to three digits (When expressed in lakhs). (CA Final May 2014)

Q.8. On 1st January, 2023, an open ended scheme of mutual fund had outstanding units of 300 lakhs with a
NAV of ` 20.25. At the end of January 2023, it had issued 5 lakhs units at an opening NA V plus a load
of 2%, adjusted for dividend equalisation. At the end of February 2023, it had repurchased 2.5 lakhs

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 units at an opening NAV less 2% exit load adjusted for dividend equalisation. At the end of March
2023, it had distributed 70 per cent of its available income.
In respect of January - March quarter, the following additional information is available:
Value appreciation of the portfolio ` 460 lakhs
Income for January ` 24 lakhs
Income for February ` 36 lakhs
Income for March ` 47 lakhs
You are required to calculate:
(i) Income available for distribution
(ii) Issue price at the end of January
(iii)Repurchase price at the end of February
(iv) Closing Value of Net Assets at the end of March. (CA Jan. 2021)

Q.9. Following are the details of closed ended equity schemes of two mutual funds as on 31/08/2022:
Particulars AJ Mutual Fund RP Mutual Fund
NAV (p.u.) ` 80 (consisting 95% equity ` 61(consisting ` 60 equity
& remaining cash balance) & remaining cash balance)
Sharpe Ratio 1.5 3
Treynor Ratio 1.2 10
Standard Deviation 10 6
There is no change in portfolios during the September month. Monthly cost is ` 0.50 per unit for each
mutual fund scheme. Share market rose by 2% in the month of September.
You are required to calculate Expected NAV p.u. as on 30/09/2022 for both the schemes.
(CA Final Dec. 2021)