An investor tracks the Net Asset Value (NAV, in ₹ per unit) of five mutual funds — Alpha, Bravo, Crest, Delta and Ezra — recorded on the 1st of each month from January to May.
| Fund | 1 Jan | 1 Feb | 1 Mar | 1 Apr | 1 May |
|-------|-------|-------|-------|-------|-------|
| Alpha | 100 | 110 | 105 | 115 | 120 |
| Bravo | 50 | 55 | 60 | 58 | 65 |
| Crest | 200 | 190 | 195 | 210 | 220 |
| Delta | 80 | 84 | 90 | 88 | 95 |
| Ezra | 125 | 130 | 128 | 135 | 140 |
On 1 January, the investor invested exactly ₹10,000 in each of the five funds. The number of units allotted in a fund = ₹10,000 / (NAV on 1 Jan for that fund), and this number of units held in each fund does not change afterwards (no further buying or selling except where stated). The value of the investor's holding in a fund on any date = (units held) × (NAV on that date).
| Fund | 1 Jan | 1 Feb | 1 Mar | 1 Apr | 1 May |
|-------|-------|-------|-------|-------|-------|
| Alpha | 100 | 110 | 105 | 115 | 120 |
| Bravo | 50 | 55 | 60 | 58 | 65 |
| Crest | 200 | 190 | 195 | 210 | 220 |
| Delta | 80 | 84 | 90 | 88 | 95 |
| Ezra | 125 | 130 | 128 | 135 | 140 |
On 1 January, the investor invested exactly ₹10,000 in each of the five funds. The number of units allotted in a fund = ₹10,000 / (NAV on 1 Jan for that fund), and this number of units held in each fund does not change afterwards (no further buying or selling except where stated). The value of the investor's holding in a fund on any date = (units held) × (NAV on that date).
Question 1
Single correct option
Which fund gives the investor the highest holding value on 1 May?
- A. Alpha
- B. Bravo
- C. Crest
- D. Delta
Show answer and solution
Answer: (B) Bravo
Units held = 10000/NAV(1 Jan). Alpha: 10000/100=100 units → value on 1 May = 100×120=₹12,000. Bravo: 10000/50=200 units → 200×65=₹13,000. Crest: 10000/200=50 units → 50×220=₹11,000. Delta: 10000/80=125 units → 125×95=₹11,875. Bravo's ₹13,000 is the highest.
Question 2
Numerical answer
What is the investor's total portfolio value (sum across all five funds) on 1 April?
Show answer and solution
Answer: 55400
Units: Alpha=100, Bravo=200, Crest=50, Delta=125, Ezra=80. Values on 1 Apr: Alpha=100×115=11500; Bravo=200×58=11600; Crest=50×210=10500; Delta=125×88=11000; Ezra=80×135=10800. Sum = 11500+11600+10500+11000+10800 = ₹55,400.
Question 3
Single correct option
For which fund(s) did the NAV fall between 1 February and 1 March?
- A. Alpha and Ezra only
- B. Bravo and Crest only
- C. Alpha only
- D. Delta and Ezra only
Show answer and solution
Answer: (A) Alpha and Ezra only
Compare 1 Feb → 1 Mar for each fund: Alpha 110→105 (fell), Bravo 55→60 (rose), Crest 190→195 (rose), Delta 84→90 (rose), Ezra 130→128 (fell). Only Alpha and Ezra fell.
Question 4
Single correct option
What is the percentage return on the Delta fund from 1 January to 1 May (based on NAV alone)?
- A. 15%
- B. 17.5%
- C. 18.75%
- D. 20%
Show answer and solution
Answer: (C) 18.75%
NAV of Delta rose from 80 on 1 Jan to 95 on 1 May. Percentage return = (95−80)/80 × 100 = 15/80 × 100 = 18.75%. This is the NAV-based return; note it differs slightly from the investor's actual holding-value return once units are accounted for, but here units are constant so the two coincide.
Question 5
Numerical answer
If the investor sells all units of the Alpha fund on 1 May, what is the profit (in ₹) on this fund, over and above the original ₹10,000 invested?
Show answer and solution
Answer: 2000
Units in Alpha = 10000/100 = 100. Value on 1 May = 100×120 = ₹12,000. Profit = 12000−10000 = ₹2,000.
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