1. A mutual fund made an issue of 10,00,000 units of` 10each onJanuary 01,2008. Noentry load was charged. It made the following investments:

Particulars `

50,000 Equity shares of 100 each @ 160 80,00,000

7% Government Securities 8,00,000

9% Debentures (Unlisted) 5,00,000

10% Debentures (Listed)5,00,000

98,00,000

During the year, dividends of ` 12,00,000 were received on equity shares. Interest on all types of debt securities was received as and when due. At the end of the year equity shares and 10% debentures are quoted at 175% and 90%respectively. Other investments are atpar.

Find out the Net Asset Value (NAV) per unit given that operating expenses paid during the year amounted to 5,00,000. Also find out the NAV, if the Mutual fund had distributed a dividend of 0.80 per unit during the year to the unit holders.

2. Based on the following information, determine the NAV of a regular income scheme on per unit basis:

Particulars ` Crores

Listed shares at Cost (ex-dividend) 20

Cash in hand 1.23

Bonds and debentures at cost 4.3

Of these, bonds not listed and quoted 1

Other fixed interest securities at cost 4.5

Dividend accrued 0.8

Amount payable on shares 6.32

Expenditure accrued 0.75

Number of units (` 10 face value) 20 lacs

Current realizable value of fixed income securities of face value of

` 100 106.5

The listed shares were purchased when Index was 1,000

Present index is 2,300

Value of listed bonds and debentures at NAV date 8

There has been a diminution of 20% in unlisted bonds and debentures. Other fixed interest securities are at cost.

3. On 1st April, an open ended scheme of mutual fund had 300 lakh units outstanding with Net Assets Value (NAV) of ` 18.75. At the end of April, itissued 6 lakh units atopening NAVplus 2% load, adjusted for dividend equalization. At the end of May, 3 Lakh units were repurchased at opening NAV less 2%exitload adjusted fordividend equalization. At the end of June, 70% of its available income was distributed.

In respect of April-June quarter, the following additional information are available:

` in lakh

Portfolio value appreciation 425.47

Income of April 22.950

Income for May 34.425

Income for June 45.450

You are required to calculate

(i) Income available for distribution;

(ii) Issue price at the end of April;

(iii) repurchase price at the end of May; and

(iv) net asset value (NAV) as on 30th June.

4. Five portfolios experienced the following results during a 7- year period:

Portfolio Average Annual Return (Rp) (%) Standard Deviation (Sp) Correlation with the market returns (r)

A 19.0 2.5 0.840

B 15.0 2.0 0.540

C 15.0 0.8 0.975

D 17.5 2.0 0.750

E 17.1 1.8 0.600

Market Risk (m)1.2

Market rate of Return (Rm) 14.0

Risk-free Rate (Rf) 9.0

Rank the portfolios using (a) Sharpe's method, (b) Treynor's method and (c) Jensen's Alpha

5. There are two Mutual Funds viz. D Mutual Fund Ltd. and K Mutual Fund Ltd. Each having close ended equity schemes.

NAV as on 31-12-2014 of equity schemes of D Mutual Fund Ltd. is ` 70.71 (consisting 99% equity and remaining cash balance) and that of K Mutual Fund Ltd. is 62.50 (consisting 96% equity and balance in cash).

Following is the other information:

Particular Equity Schemes

D Mutual Fund Ltd. K Mutual Fund Ltd.

Sharpe Ratio 2 3.3

Treynor Ratio 15 15

Standard deviation 11.25 5

There is no change in portfolios during the next month and annual average cost is ` 3perunit for the schemes of both the Mutual Funds.

If Share Market goes down by 5% within a month, calculate expected NAV after a month for the schemes of both the Mutual Funds.

For calculation, consider 12 months in a year and ignore number of days for particularmonth.