An investor invests Rs 50,000 with a gross return of 18%. If expenses comprise management fees of 1.7%, exit load of 1%, and expense ratio of 2.5%, what is the net return after one year?

Practice question from NISM Series XB- Investment Adviser (Level 1) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

A

18%
B

15.4%
C

12.8%
11.9%

Correct answer

Why this is the answer

Total expenses are 5.2%. The gross amount grows to Rs 59,000; deducting expenses leaves Rs 55,932, resulting in an approximate net return of 11.9%.

Test yourself for real

Take a full NISM Series X mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.

NISM Series XB- Investment Adviser (Leve…