MCQ for CA Final SFM - Chapter 4 Mutual Funds

Sample Multiple Choice Questions (MCQ's) for CA Final - Paper 2 - Strategic Financial Management - Chapter 4: Mutual Funds - For Practice relevant for May/Nov 23 Examinations

 

Q:1 Mr. A can earn a return of 16 per cent by investing in equity shares on his own. Now he is considering a recently announced equity based mutual fund scheme in which initial expenses are 5.5 per cent and annual recurring expenses are 1.5 per cent. How much should the mutual fund earn to provide Mr. A return of 16 per cent?

 

  1. 14.33%
  2. 17.83%
  3. 18.43%
  4. 12.56%

Answer: 3

 

Q:2 A mutual fund that had a net asset value of`20 at the beginning of month - made income and capital gain distribution of`0.0375 and`0.03 per share respectively during the month, and then ended the month with a net asset value of`20.06. Calculate monthly return

 

  1. 0.3675% p.m
  2. 0.6375% p.m
  3. 0.7015% p.m
  4. 0.6175% p.m

Answer: 2

 

Q:3 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 values)

20 lacs

Current realizable value of fixed income securities of face values 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.

 

  1. 273.10
  2. 275.50
  3. 271.30
  4. 274.25

Answer: 3

 

Q:4 On 1-4- 2012ABC Mutual Fund issued 20 lakh units at`10per unit. Relevant initial expensesinvolvedwere`12 lakhs. It invested the fund so raised in capital market instruments to build a portfolio of`185 lakhs. During the month of April 2012 it disposed off some of the instruments costing`60 lakhs for`63 lakhs and used the proceeds in purchasing securities for`56 lakhs. Fund management expenses for the month of April 2012 was`8 lakhs of which 10% was in arrears. In April 2012 the fund earned dividends amounting to`2 lakhs and it distributed 80% of the realized earnings. On 30-4-2012 the market value of the portfolio was`198 lakhs.  

Mr. Akash, an investor, subscribed to 100 units on 1-4-2012 and disposed off the same at closing NAV on 30-4-2012. What was his annual rate of earning?

 

  1. 10%
  2. 13%
  3. 12%
  4. 15%

Answer: 3

 

Q:5 ANP Plan, a hedge fund currently has assets of`20 crore. CA. X, the manager of fund charges fee of 0.10% of portfolio asset. In addition to it he charges incentive fee of 2%. The incentive will be linked to gross return each year in excess of the portfolio maximum value since the inception of fund. The maximum value the fund achieved so far since inception of fund about one and half year ago was`21 crores.

You are required to compute the fee payable to CA. X, if return on the fund this year turns out to be 4.5%

 

  1. 100000
  2. 150000
  3. 200000
  4. 300000

Answer: 3

 

CA Final - Paper 2 - SFM - Chapter 5   

 

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