Multiple choice

Net Asset Value per unit means

  1. (Book value of assets liabilities)/Units outstanding

  2. Unit capital / Units outstanding

  3. Net assets divided by Initial number of units

  4. (Market value of assets Liabilities)/Units outstanding
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

NAV is calculated as (Market Value of Assets - Liabilities) divided by Units Outstanding. This gives the per-unit value of the fund's portfolio after deducting expenses and liabilities. Option A incorrectly uses book value, option B is just the face value calculation, and option C uses initial units instead of current outstanding units.

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