Multiple choice

When computing NAV of fund SEBI requires accrual of major expenses to be accounted for

  1. quarterly

  2. annually

  3. on a day to day basis

  4. when actually paid
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

SEBI requires daily accrual of major expenses like management fees, operating expenses, and other accrued costs when computing NAV. Quarterly or annual accrual would create inaccurate NAV values. Accrual must happen day-to-day to reflect true net asset value on any given date.

Keep practicing — related questions