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Ch.7 · NAV Calculation Rules · easy

A fund's NAV was ₹50 one year ago. Today it is ₹58. What is the 1-year return?

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EXPLANATION

1-year return = (Current NAV − Previous NAV) / Previous NAV × 100 = (58 − 50) / 50 × 100 = 8/50 × 100 = 16%. The NAV increased by ₹8 on a base of ₹50, which is a 16% return. This basic NAV-based return calculation is a core NISM V-A exam concept.

A.8%

B.16% [✓ Correct]

C.58%

D.8 rupees

EXPLANATION

1-year return = (Current NAV − Previous NAV) / Previous NAV × 100 = (58 − 50) / 50 × 100 = 8/50 × 100 = 16%. The NAV increased by ₹8 on a base of ₹50, which is a 16% return. This basic NAV-based return calculation is a core NISM V-A exam concept.

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