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general doubt about theory chapters in AFN

AFM

answered on 05-Feb-25 12:39

Do we have to refer ICAI material again to study the theory topics and questions (including MCQ), or are the theory questions given in 1FIN's theory book enough for exam and mcq ?

latest answer

Practical questions we have covered 100% no need to go back to ICAI material

Ali S

Ali S

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Expenses to be deducted for calculation of NAV

AFM

answered on 04-Feb-25 12:49

sir should brokerage expense and advertiement expense be deducted from calculation of NAV?

latest answer

Yes They are Asset Management expenses - Total Expense Ratio includes all these. SEBI has caps ( eg 1%, 2% etc) on these. If more than cap is incurred, the AMC cannot recover these from Fund they have to bear it on own

P AKSHAYA

P AKSHAYA

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Why "e^(r-d)*t" was used ?

AFM

answered on 02-Feb-25 12:24

Why "e^(r-d)*t" was used rather simiply we can add "cost to carry" deduct the "dividend".

latest answer

Derivatives are priced using Continuous compounding method - that is the original formula PA compounding and simple interest are used only for explanation purposes so that the concepts are understood. In case ICAI asks questions without continuous compounding then you may use normal compounding - otherwise continuous compounding is preferred

Chakri simhadri

Chakri simhadri

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361

How to prepare for paper 6 - Integrated Business Solutions

AFM

answered on 01-Feb-25 20:49

Dear Sir, I am a student who has taken up classes from Indigo learn. I wanted to know how can I prepare for my paper 6 exams. It would be really helpful if you could share some insights or pointers on how to approach this paper. (I did not not know where else to post this query so I have posted on the last video.) Thank you

latest answer

Thank you so much sir !

Manu Jacob

Manu Jacob

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Avg return of the portfolio

AFM

answered on 08-Jul-26 09:29

If the average return of the portfolio is given, then can we not also calculate Portfolio beta and substitute in the CAPM return formula and arrive the market rate?

latest answer

Usually beta is computed based on initial investment value

Benwin Thattil

Benwin Thattil

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386

Futures value

AFM

answered on 31-Jan-25 06:40

While calculating value of futures, is the BSE value in Rs or Index as we are calculating interest on that 5000.

latest answer

Achaa achaa !! Got it !! Thank you !!

Hrishikesh Pradhan

Hrishikesh Pradhan

Qualified CA

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Derivatives

AFM

answered on 30-Jan-25 09:07

Sir why is this negative taken also it's not matching with forward contact working

latest answer

Thank you sir

Edwin jees

Edwin jees

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297

IFM - Illustration 18

AFM

answered on 29-Jan-25 20:47

In this question, we have included the cost of debt for computation of WACC but we are assuming that loan is taken by Vishwas and not the company. Isn't it logical to assume that the company has paid the interest instead of Mr. Vishwas?

latest answer

Ok sir

Vigneshwar M

Vigneshwar M

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279

IFM - Illustration 17

AFM

answered on 29-Jan-25 19:12

Sir, in this question the minimum amount the company should charge from the prospective buyer is USD 4.7427 Million (i.e., the cost & taxes paid in India assuming that no credit of Indian taxes is available in the US). Am I right sir?

latest answer

Thank you sir

Vigneshwar M

Vigneshwar M

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246

Value of project + abandonment option

AFM

answered on 28-Jan-25 07:18

Sir in Iluustration 26, value of project + abandonment calulated as (PV of Inflows - Investment + value of abandonment) But in this question value of project considered as Investment (Investment + value of abandonment)

latest answer

Good point If u read the questions you will notice a diff In q 26 they are asking whether we should invest or not so NPV is the relevant metric In this Q value of option and value of project with option refer to overall value of the project and not the NPV

Hemachandra D

Hemachandra D

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