CA final SFM May 2018

Page no : 2

Rajan (Student) (150 Points)
Replied 04 May 2018

What was the answer to Mutual Funds questions days part?
Has anyone got the following answer
95, 31, 68 days

5 Like

Abhishek Goel (C.A. Final Student) (193 Points)
Replied 04 May 2018

Yes I got the same answers as yours...seems correct I guess...

1 Like

Vivek Sarda (Student) (171 Points)
Replied 04 May 2018

yes same days... rest 3 parts no idea..

manasi kulkarni (Student CA Final ) (159 Points)
Replied 04 May 2018

Yes I got the same answer. what was the total yeild??

1 Like

Yash (Student) (115 Points)
Replied 04 May 2018

Rajan I got the same answer....

1 Like

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 04 May 2018

dividend plus appreciation over original NAV is your total yeild on original amt invested

1 Like

Sahil Sachdeva (12 Points)
Replied 04 May 2018

1 word fail

Vivek Sarda (Student) (171 Points)
Replied 04 May 2018

Main question was what was the date of original investment??

Abhishek Goel (C.A. Final Student) (193 Points)
Replied 04 May 2018

well I multiplied the annual yeilds with amount invested separately. and then added all those yeilds and divided by total investment of 8 lacs...
bcoz anyways if u want to calculate total yeild...period has to be standard...in this case annual yeild

sanjay pareek (Student CA IPC / IPCC) (27 Points)
Replied 04 May 2018

Seriously I think Bonus Q was Incomplete. Is anyone else?

1 Like

shivam agarwal (ca student) (175 Points)
Replied 04 May 2018

average

get analysis of sfm paper may 2018 by respected ca mayank kothari.

Attached File : 939471 20180504192547 sfm old may 18 paper analysis.pdf downloaded: 700 times

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 04 May 2018

if you check the solution in PM they have shown total yeild as dividend plus apprecation in nav over initial investment as total yeild

Lovepreet Singh (Army of Final War) (359 Points)
Replied 04 May 2018

bonus issue could be solved by ASSUMING proportion of Public holding below 25%

1 Like

gokularamanan (hbh) (68 Points)
Replied 04 May 2018

Calculation of Front-End Load or Entry Load:

Calculation of Back-End Load or Exit Load:

Examples showing the calculation of entry load and exit load are given below:

1. Entry Load:

Charged at the time of entering into the scheme. The entry load percentage is added to the NAV at the time of allotment of units.

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For example, if an open-end fund’s per unit is Rs.11 with front load of 2%. The price at which an investor can buy a unit is Rs.11.22. In other words, Rs.100 would buy units = (Rs.100 – Rs.2)/11 = 8.9 units.

2. Exit Load:

Charged at the time of redeeming, transfer between schemes. The exit load percentage is deducted from the NAV at the time of redemption or transfer between schemes.

For example, if the redemption price is Rs.10.70, with a back-end load of 2%, the exit load charged by the fund amounts to Rs.0.21. So, the net sale proceeds will be Rs.10.70 – Rs.0.21 = Rs.10.49

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In other words, sale of 50 units would not fetch 50 units x Rs.10.70 = Rs.535 but only 50 units x Rs.10.49 = Rs.524.5

Problem:

The unit price of TSS Scheme of a mutual fund is Rs.10. The public offer price (POP) of the unit is Rs.10.204 and the redemption price is Rs.9.80.

Calculate:

(i) Front-end Load, and

(ii) Back-end Load.

(i) Calculation of Front-End Load (F):