Unit ko samjho · NISM Series V-D
Net Asset Value, Total Expense Ratio and Pricing of Units
5 questions is unit mein
Sawaal aur jawaab English mein hain, kyunki NISM ka exam paper bhi English mein hota hai.
Is unit mein kya hai
- A scheme has investments and other assets of ₹51 crore, liabilities of ₹1 crore and 2 crore units outstanding. What is NAV per unit?
- An investor redeems 2,000 units at an applicable NAV of ₹30. The stated scheme terms charge an exit load of 1% of the gross redemption amount for these units. Ignore taxes and other charges. What cash is paid? Assumptions: The 1% exit load is an explicitly supplied scheme term. No tax or other deduction applies.
- For an expense-accrual illustration, assume a scheme has a constant expense base of ₹20 crore, an annual expense rate of 1.50%, and accrues expenses on actual days divided by 365. What is the 30-day expense, rounded to the nearest rupee? Assumptions: The base is constant and the actual/365 convention is supplied for this illustration.
- A credit event leads to an authorised segregated portfolio. An investor now has units in both the main and segregated portfolios, with disclosed NAVs of ₹18 and ₹2 respectively and the same 1,000-unit entitlement in each. What is the sound interpretation of the ₹2 segregated NAV? Assumptions: Segregation and unit entitlements are validly established as stated. The question tests interpretation rather than the eligibility rules.
- For a simplified valuation, a perpetual bond pays ₹80 annually forever, with the next payment one year from now. If its required annual yield rises from 8% to 10%, what happens to its value? Assume no default, call option or other feature. Assumptions: This is a mathematical level perpetuity, not a claim about valuation conventions for every regulatory capital bond.
Zaroori ideas
Practice bank se · 1
A scheme has investments and other assets of ₹51 crore, liabilities of ₹1 crore and 2 crore units outstanding. What is NAV per unit?
NAV = (₹51 crore − ₹1 crore)/2 crore units = ₹25 per unit. The same scale must be used for assets and units. Remember: A unit represents a share of net assets, after liabilities.
Hint Use net assets, then divide by the number of units.
V-D-031Practice bank se · 2
An investor redeems 2,000 units at an applicable NAV of ₹30. The stated scheme terms charge an exit load of 1% of the gross redemption amount for these units. Ignore taxes and other charges. What cash is paid? Assumptions: The 1% exit load is an explicitly supplied scheme term. No tax or other deduction applies.
Gross proceeds are 2,000 × ₹30 = ₹60,000. The ₹600 exit load leaves ₹59,400. Remember: A transaction price or net payout can differ from the quoted NAV.
Hint Calculate gross proceeds and deduct 1% of that amount.
V-D-032Practice bank se · 3
For an expense-accrual illustration, assume a scheme has a constant expense base of ₹20 crore, an annual expense rate of 1.50%, and accrues expenses on actual days divided by 365. What is the 30-day expense, rounded to the nearest rupee? Assumptions: The base is constant and the actual/365 convention is supplied for this illustration.
Expense = ₹20,00,00,000 × 1.50% × 30/365 = ₹2,46,575.34, rounded to ₹2,46,575. Actual accrual calculations must follow the applicable expense base and day convention. Remember: Annual expense percentages must be converted to the relevant period consistently.
Hint Apply the annual rate to the stated base and multiply by 30/365.
V-D-033Practice bank se · 4
A credit event leads to an authorised segregated portfolio. An investor now has units in both the main and segregated portfolios, with disclosed NAVs of ₹18 and ₹2 respectively and the same 1,000-unit entitlement in each. What is the sound interpretation of the ₹2 segregated NAV? Assumptions: Segregation and unit entitlements are validly established as stated. The question tests interpretation rather than the eligibility rules.
The segregated portfolio represents the separated assets and their risks. Its NAV is a valuation estimate under the applicable process. Actual recoveries and timing may differ. Remember: Segregation changes how exposure is tracked, not the certainty of its recovery.
Hint Separate valuation and entitlement from certainty of recovery.
V-D-034Practice bank se · 5
For a simplified valuation, a perpetual bond pays ₹80 annually forever, with the next payment one year from now. If its required annual yield rises from 8% to 10%, what happens to its value? Assume no default, call option or other feature. Assumptions: This is a mathematical level perpetuity, not a claim about valuation conventions for every regulatory capital bond.
Initial value is ₹80/0.08 = ₹1,000. Revised value is ₹80/0.10 = ₹800. The fall of ₹200 is 20% of the original value. Remember: A fixed payment stream becomes less valuable when its required yield rises.
Hint For this perpetual level payment, value equals annual coupon divided by required yield.
V-D-035