Ch 8 · Mutual Funds — CA Final AFM
4 levels · 56 questions · free
How to play
Mixed questions from this chapter — fill the missing term, sort into the right box, match the pairs, order the steps, or catch the formula that is wrong.
What this drills
NAV appears in sixteen of the chapter's questions, and the load formulas are where the marks actually go — a front-end load divides by (1 − FEL), a back-end load by (1 + BEL).
- ✓NAV, entry and exit loads
- ✓Classification by structure and by portfolio
- ✓Holding period return and expense ratio
- ✓ETFs, FMPs and tracking error
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Games are revision; the syllabus is the book. Conferenza stocks the CA Final AFM lectures and books covering the same chapters.
CA Final books →Ch 8 · Mutual Funds — questions
Why is the public offer price NAV ÷ (1 − FEL)?+
A front-end load makes you PAY more than NAV, so dividing by a number less than one raises the price. A back-end load makes you RECEIVE less than NAV, so redemption price is NAV ÷ (1 + BEL).
What causes tracking error?+
Transaction costs, fees charged by the AMC, fund expenses, cash holdings and sampling bias. To replicate an index exactly, tracking error should be near zero.