Multiple choice

If the NAV of an open-end fund increased from Rs.16 to Rs.20 in 6 months, the absolute return is

  1. 6.00%

  2. 34.60%

  3. 25.00%

  4. 37.50%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Absolute return is calculated as ((NAV ending - NAV beginning) / NAV beginning) × 100. Here: ((20 - 16) / 16) × 100 = (4 / 16) × 100 = 25%. This measures total percentage return without annualizing or considering time periods. Option C is the correct calculation.

Keep practicing — related questions