IFIC Mutual Funds Licensing Practice Exam · Question
A client is reviewing their mutual fund statement and sees that the Net Asset Value Per Share (NAVPS) for their equity fund decreased by $0.50 today. What does this change primarily indicate?
NAVPS directly reflects the total market value of all assets held by the fund, after deducting liabilities, divided by the number of outstanding units. Therefor
Start free practice for IFIC Mutual Funds Licensing Practice Exam
355 questions · no signup required · 40 free questions per day
Question: A client is reviewing their mutual fund statement and sees that the Net Asset Value Per Share (NAVPS) for their equity fund decreased by $0.50 today. What does this change primarily indicate?
Answer options: ✅ The total value of the fund's underlying investments decreased proportionally.
- The fund manager distributed a dividend to shareholders.
- More investors redeemed shares than purchased them.
- The fund's Management Expense Ratio (MER) increased for the day.
Correct answer: The total value of the fund's underlying investments decreased proportionally.
Explanation: NAVPS directly reflects the total market value of all assets held by the fund, after deducting liabilities, divided by the number of outstanding units. Therefore, a decrease in NAVPS typically means the market value of the fund's underlying investments has declined.
Start free practice for IFIC Mutual Funds Licensing Practice Exam
355 questions · no signup required · 40 free questions per day
More about IFIC Mutual Funds Licensing Practice Exam
More for IFIC Mutual Funds Licensing Practice Exam candidates
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free IFIC Mutual Funds Licensing Practice Exam Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.