$41.$ Katope wishes to invest his Tshs $100,000,000$ in one of the Mutual Funds to boost his future income. The following information is also available regarding the two products

Products

Details TAG Mutual

Fund SEWE Mutual

Fund

Net Asset Value $($Tshs$)300,000,000250,000,000$

Total Units issued $150,000125,000$

Market Price per Unit $($Tshs$)18001600$

Initial Costs $(\%$ of the value of investment$)5\%3\%$

Annual Management Costs $(\%$ of the value of the fund$)1\%1\mathrm{.}5\%$

The average rate of Return $8\%6\%$

Required: With relevant calculations, advise James in each of the below scenarios

i$.$ TAG Fund is subject to an annual tax of $15\%$ and SEWE Fund is subject to a deferred tax of $20\%.$ If Katope wants to invest for $25$ year which fund is the best?

ii If AG Mutual Funds is expecting to buy back $40\%$ of existing shares in four months$$ time. If the discount$/$premium remains the same after the buyback, compute the new Net asset Value per share, New Market Value per share and advice Katope on whether he should buy the Units now or wait after the buyback exercise is complete.