Think before you Act

CA Aaditya Jain

MUTUAL FUND-1

QUESTION NO. 1
Particulars
Equity Shares [ 20/1000 x 2300]
Cash in hand
Bonds and debentures not listed
Bonds and debentures listed
Dividends accrued
Fixed income securities 4.5 /100 x 106.5
Sub total assets (A)
Less: Liabilities
Amount payable on shares
Expenditure accrued
Sub total liabilities (B)
Net Assets Value (A) (B)
No of units
Net Assets Value per unit ( Rs. 54.26 crore / 20,00,000)

Adjustment Value ( Rs. crores )

46.00
1.23
0.80
8.00
0.80
4.7925__
61.6225
6.32
0.75
7.07
54.5525
20,00,000
Rs. 272.7625

QUESTION NO. 2
ABC
XYZ
A = P(1+r)n
A = P(1+r)n

20000 = 10000(1+r)2
20000 = 10000(1+r)4

r = 0.4142
r = 18.92%

r = 41.42%
QUESTION NO. 3
A = P(1+r)n 2000 = 1000 (1 r)3 (1+r) 3 2 r = 1.2599-1 r = 0.2599 = 25.99%
FV after two year. = 1000 (1 .2599) 2 = 1000(1.58735) = 1587.35
QUESTION NO. 4
We know that % Return =

(Closing NAV Opening NAV) Capital Gain Received Dividend Income Received
Opening NAV

Now for Reliance MF : % Return (Period from 1st Jan. 31st March, 2006)
=

(105 100) NIL 5

100

= 10% for 3 months.Therefore, Annualised Return =

10%
12 40%
3

Working Notes :
Total Dividend

10000

5
(i)Dividend Per Unit=AADITYA
= 2000SATELLITE
SFM CLASSASS
No. of Units JAIN

Amount Invested

(ii) No.of Units= NAV at the time of Investment =

QUESTION NO. 5

200000
2000 Units
100

Think before you Act

CA Aaditya Jain

MUTUAL FUND-2

Return for MF A (Period 1-12-03 to Period 31-03-04) =

(10.40 10.50) .20

10.50

.95% for

4 months

12

Return for MF-A for per annuam basis ( Yield per annum )= Yield Months of Investment
= .95

12
2.85%
4

Working Notes :
Total Investment

Total Dividend

950

50,000

.20
4762 (b) Dividend Per Unit =
(a) No. of Units NPV at entry date =
No. of Units
4762
10.50

Return for MF B (Period 1 04 to 31 3 04) =

(10.10 10.00) .15

2.5%
10

for 3 months .

12

Return for MF-Bfor per annuam basis ( Yield per annum ) = 2.5 3 = 10%
Working Notes:
Total Investment
1,00,000
(a) No. of Units NPV at entry date = 10 10,000

Total Dividend

(b) Dividend Per Unit = No. of Units

Return for MF C : (Period 01 - 03-04 to 31 - 03 - 04) =

(9.80 10.00) NIL

100

Return for MF-C for per annuam basis ( Yield per annum ) = 2%

1500

= 10,000 .15

= 2% for 1 months .

12
24%
1

Working Notes :
Total Investment

50,000
5000 units ;Dividend Per Unit
(a) No. of Units NPV at entry date =
10
or no required to calculate as Dividend is NIL as given in question .

Nil

Nil

= No. of Units 5000 Nil

QUESTION NO. 6
NAV at End NAV at Beginning 17.50 - 17.15
Return
= 0.02041

NAV at Beginning
17.15

i.e. 2.041% for 2 month

Annualized Return = 2.041 x 12/2 = 12.2460%

QUESTION NO. 7
Return

(22.45 - 21.85) 14.5% of 10

21.85

= 9.3822%

Note : Assuming Face Value to be Rs. 10 and we know that Dividend is always calculated on Face Value .

AADITYA JAIN SATELLITE SFM CLASSASS

QUESTION NO. 8
(a)
(9.10 - 8.50) .90 .75
100 = 26.47%
Rs.8.50
(b)When all dividends and capital gains distributions are reinvested into additional units of the fund (Rs.

Holding period return =

Think before you Act

8.75/unit):
Dividends and capital gains per unit:
Total amount received from 200 units:
Additional units added:
Thus, the Holding Period Return would be:
=

CA Aaditya Jain

MUTUAL FUND-3
Rs. 0.90 + Rs. 0.75
Rs. 1.65 X 200
Rs. 330/Rs. 8.75

= Rs. 1.65
= Rs. 330.00
= 37.7 units

Rs.237.7 9.10 Rs.200 8.50

= 27.24%
Rs.200 8.50

QUESTION NO. 9
NAV at which units were purchased i.e Initial Investment = 25, Dividend Receipt = Re. 1 (10% of Rs. 10)
Further units purchased at prevailing price =

1
.05 ;Total units = 1 + 0.5 = 1.05
20

NAV at the end = Rs. 30 for 1 unit NAV of 1.05 unit = 30 1.05 = Rs 31.5
% Return =

31.5 25
100 26%
25

Note : Face Value of HDFC Mutual Fund is assumed to be Rs. 10.

QUESTION NO. 10
5,00,000

X : Plan A :Unit acquired = 42.18 = 11,854 units

Date
Units held Dividend % Amount
01.04.00
15.09.01
11,854
15
17.781
31.03.03
12,237
20
24.474
15.03.04
12.746
18
22,943
27.03.06
13,187
16
21,099
28.02.07
13,577
12
16,292
31.03.08 Redemption 13,872 x 50.10
Less: STT 0.2 %

Reinvestment Rate New Units

46.45
48.10
52.05
54.10
55.20

383
509
441
390
295

Less: Short-term capital gains

Net proceeds
Annual Return =

6,93,597 - 5,00,000 1
100 = 5.53 % p.a
5,00,000
7

5,00,000
= 14,278
35.02JAIN SATELLITE
AADITYA

Y : Plan B :Unit acquired =

Date
01.04.00
28.07.02
31.10.03
24.03.05
28.02.07

Units held
14,278
14,278
16,658
18.740
20,444

SFM CLASSASS

Bonus Ratio Number

Total Units

1:6
1:8
1 : 11
1 : 12

16,658
18,740
20,444
22,148

2,380
2,082
1,704
1,704

Total Units
11,854
12,237
12,746
13,187
13,577
13,872
Rs. 694,987
1,390
693,597
______693,597

Think before you Act

31.03.08
Redemption 22,148 x 34.10
Less: STT @ 0.2 %
Less: Short-term capital gains
Net proceeds
Annual Return =

CA Aaditya Jain

MUTUAL FUND-4
Rs. 755,247
1,510
753,737
753,737

7,53,737 - 5,00,000 1
100 =7.24962 % p.a
5,00,000
7

Note: In the given case,short term Capital Gain will not arise as the period of holding of the last units purchased
exceeds 12 months.
Note:Total Period of holding will be 7 years calculated as follows :
Investment [ Purchase]
= 1-4-01
Redeemed [Mature]
= 31-3-08
Period Of Holding
= 7 Years
QUESTION NO. 11
(a)Plan D
Unit acquired = 2,00,000 / 38.20 = 5235.60
Date
Units held Dividend
Reinvestment New
Total
%
Amount
Rate
Units
Units
01.04.2005
5235.60
30.09.2005
5235.60 10
5235.60
39.10
133.90
5369.50
31.03.2007
5369.50 15
8054.25
44.20
182.22
5551.72
15.09.2008
5551.72 13
7217.24
45.05
160.20
5711.92
27.03.2009
5711.92 16
9139.07
44.80
204
5915.92
31.03.2010
Maturity Value
Rs. 40.40 x 5915.20
Rs. 2,39,003.17
Less: Cost of Acquisition
Rs. 2,00,000.00
Total Gain
Rs. 39,003.17
Annual Return = Rs.39,003.17 / Rs.2,00,000 x 1/5 x 100 = 3.90% p.a
Plan B
No.of
Units
NAV (Rs.)
1.4.05
Investment
Rs.2,00,000/35.60=5617.98
35.60
30.6.06
Bonus
5617.98/5 = 1123.60
36.25
6741.58
30.10.08

6741.58/8 = 842.70
38.30
7584.28
AADITYA JAIN SATELLITE SFM CLASSASS
11.4.09

7584.28/10 = 758.43
38.90
8342.71
31.3.10
Maturity Value 8342.71 x Rs. 39.70=
3,31,205.59
Less: Investment
2,00,000.00
Gain
1,31,205.59

Think before you Act

MUTUAL FUND-5

CA Aaditya Jain

Annual Return = 1,31,205.59 /2,00,000 x 1/5 x 100 = 13.12% p.a

QUESTION NO. 12
We know that,( Return of Mutual FundRecurring Expenses )(1-Issue Expenses) = Return Required by investors
(18% Recurring Expenses ) (1-.05) = 15 % Recurring Expenses = 2.21 %
QUESTION NO. 13
From the given question we have,
.10

.10 = (Return of Mutual Fund .02) (1 .06) (1 .06) .02 Re turn of Mutual Fund
Return of Mutual Fund = .1264 = 12. 64%
QUESTION NO. 14
(a)Total amount paid by him to purchase one unit of Reliance MF :
NAV (1 + Entry load)
= 100 (1 + .02) = 102
(b) Total amount he will receive after selling one unit of Reliance MF:
NAV (1 Exit Load) = 150 (1 .01) = 148.5
QUESTION NO. 15
For 2004 :

[64.84 60.36] .83 2.42

[44.10 61.6455] .72 9.02
12.70%
=12.81 % ; For 2001 :
61.6455
60.36

Note : Since Entry Load is 3 % . Initial Investment in 2004 and 2001 for one unit will be
58.60(1+.03) = 60.36 and 59.85(1+.03)=61.6455
QUESTION NO. 16
Sale Price by Mutual Fund Company = NAV (1 + Front Load)
Therefore NAV = Sale Price / (1 + Front Load ) = 12.30/1.05 = Rs. 11.70 approx.
QUESTION NO. 17
Sale Price of units by Mutual Fund Company = NAV (1 + Entry load )= 23.45 (1 +.002) = Rs.23.92
Re-purchase Price ( or Buy Back Price )= NAV (1 - Exit Load ) = 23 .45 (1 - 0.0025 ) = Rs. 23 .39
QUESTION NO. 18
Sale Price = NAV (1 + Entry load ) = 30.7250 x (1 + .0125) = Rs.31.1091
Number of units

Amount to be invested
16000

= 514.3196 units.
Sale
Price
31.1091
AADITYA JAIN SATELLITE SFM CLASSASS

QUESTION NO. 19
Re - Purchase Price = NAV (1 - Exit Load ) = 33.15 (1 - .0125) = Rs. 32.7356
No of units you will sell

18000
=
32.7356

549.8601 units.

Think before you Act

MUTUAL FUND-6

CA Aaditya Jain

QUESTION NO. 20
Sale Price Of Company = NAV (1 + Entry Load ) =35.5750 ( 1 + 0.0075 ) = Rs.35.8418
Amount to be invested = 2000 x 35.848 = Rs. 71,683.625
QUESTION NO. 21
Repurchase Price or Price received by an investor for selling his investment
= NAV (1 - Exit load ) = 40.4250 (1 - .002) = Rs. 39.6165/Amount Received = 2500 x 39.6165 = Rs.99041.25
QUESTION NO. 22
The following portfolio details of a fund are available :
Stock Shares
Price (Rs.) Value
A
200000
35
7000000
B
300000
40
12000000
C
400000
20
8000000
D
600000
25
15000000
Total
42000000
NAV of the fund =

420,00,000 30000
40,000,00

QUESTION NO.23
ASSETS :
Equity Shares
Debentures
Money Market Investment
Other Current Assets.
LIABILITIES :
Current liabilities
Net asset
Number of units
NAV

= Rs. 10.4925.
Rs. In Crore
1200
300
145
105
(150)
1600
50
32

Note:Any Typing Error Fond In Solution Must Be Brought To Sir's Knowledge.SMS-8860882460 ; EMAIL-cafinalmafa@yahoo.com;CALL-(Between12-2pm):8860882460

AADITYA
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List Of Unsolved
QuestionJAIN
Which
Needs To Be
Revised
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