NISM-Series-X-A Formula Sheet

PV = FV ÷ (1 + r)ⁿ

Excel: PV(rate, nper, 0, −FV)

Example →

₹50,000 receivable after 5 years at 6% → 50,000 ÷ 1.06⁵ = ₹37,362.91.

Trap →

The rate is stated 'quarterly' but the term is in years. Convert first: r = 6% ÷ 4 = 1.5%, n = 5 × 4 = 20.

PV = C × [1 − (1 + r)⁻ⁿ] ÷ r

Excel: PV(rate, nper, −C)

Example →

Shyam gets ₹6,500 a year for 8 years at 7% → 6,500 × 5.9713 = ₹38,813.44.

Trap →

'Payments at the start of each year' makes it an annuity due: multiply the result by (1 + r), or use type = 1 in Excel.

FV = PV × (1 + r)ⁿ

Excel: FV(rate, nper, 0, −PV)

Example →

Krishna invests ₹5,00,000 at 8% for 5 years, compounded annually → ₹7,34,664 (interest ₹2,34,664).

Trap →

The same problem compounded quarterly (r = 2%, n = 20) gives ₹7,42,974. Watch for the compounding frequency hidden in the question.

CAGR = (End value ÷ Begin value)^(1/n) − 1

Excel: RATE(n, 0, −Begin, End)

Example →

NAV grows from ₹10.50 to ₹12.25 in 3 years → (12.25 ÷ 10.50)^(1/3) − 1 = 5.27%.

Trap →

For periods under one year CAGR isn't appropriate; use the simple (absolute) return. Fractional years are fine, e.g. n = 450/365.

EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1] (r monthly, n months)

Excel: PMT(rate/12, years×12, −loan)

Example →

₹30 lakh loan at 6.5% for 20 years → PMT(0.065/12, 240, −30,00,000) = ₹22,367 a month.

Trap →

If the rate is already given as a monthly rate (e.g. 0.6% a month), don't divide by 12 again. Enter the loan as negative to get a positive EMI.

Number of periods needed to repay a loan at a given EMI

Excel: NPER(rate/12, −EMI, loan)

Example →

₹5,00,000 loan, EMI ₹12,000, rate 8% → NPER(0.08/12, −12000, 500000) = 48.98 months.

Trap →

The answer comes out in months; if the question asks for years, convert (48.98 ÷ 12 ≈ 4.08 years).

Principal part = PPMT(rate, period, nper, pv) · Interest part = IPMT(rate, period, nper, pv)

Excel: PPMT(0.07/12, 1, 120, −1000000) · IPMT(0.07/12, 1, 120, −1000000)

Example →

₹10 lakh at 7% for 10 years, month 1 → EMI ₹11,611 = interest ₹5,833 + principal ₹5,778. Interest dominates early EMIs.

Trap →

'A higher rate means more of the EMI goes to principal early' is wrong. A higher rate raises the interest share of early EMIs.

PV(due) = PV(ordinary) × (1 + r)

Excel: type = 0 (end of period) vs type = 1 (start of period)

Example →

₹5,000 a year for 4 years at 10% → ordinary ₹15,849.33; annuity due ₹17,434.26.

Trap →

Rent paid at the start of the month is an annuity due (higher PV); salary received at month-end is an ordinary annuity.

PV = C ÷ r

Example →

A perpetual bond paying ₹10,000 a year at an 8% discount rate → 10,000 ÷ 0.08 = ₹1,25,000.

Trap →

A 'very long-term 50-year bond' is still an annuity, not a perpetuity. A perpetuity has no n.

Net worth = Total assets − Total liabilities

Example →

Lakshmi: assets ₹36.22 lakh − liabilities ₹12.07 lakh = ₹24.15 lakh.

Trap →

'Gross assets of ₹50 lakh means a strong position' is wrong. Subtract liabilities; net worth is the right measure.

Savings ratio = Total savings ÷ Total income × 100

Example →

ABC family: savings ₹34,000 (surplus ₹7,000 + PF ₹9,000 + investments ₹18,000) on income ₹1,37,000 → 24.8%.

Trap →

Savings isn't just the monthly surplus in hand (₹7,000). PF contributions and other investments are added back.

Leverage ratio = Total liabilities ÷ Total assets

Example →

Liabilities ₹13 lakh, assets ₹65 lakh → 20%. Higher is riskier; above 1 means assets can't cover liabilities.

Trap →

Not the same as debt-to-equity or DSCR. Here the denominator is total assets.

Solvency ratio = Net worth ÷ Total assets = 1 − Leverage ratio

Example →

Net worth ₹52 lakh, assets ₹65 lakh → 80% (check: 1 − 0.20 = 0.80).

Trap →

An insurance company's solvency ratio is a different concept; don't mix them up.

Liquidity ratio = Liquid assets ÷ Monthly expenses (benchmark 4–6)

Example →

Liquid assets ₹13 lakh (savings ₹7L + short-term FD ₹2L + liquid MF ₹4L); monthly expenses ₹1.5 lakh → 8.67, comfortable.

Trap →

Equity shares, long-term FDs and closed-end funds are not liquid assets; they're excluded because of value uncertainty or lock-in.

Liquid assets ÷ Net worth

Example →

A client with long-term goals should have a low ratio, since excess liquidity drags returns; near-term goals justify a higher one.

Trap →

'Higher is always better' is wrong. The right level depends on the client's goal horizon.

Financial assets ÷ Total assets × 100

Example →

Shares ₹5L + FD ₹10L + MF ₹12L = ₹27L financial; land ₹9L + gold ₹14L physical; total ₹50L → 54%.

Trap →

Physical gold is not a financial asset. Gold, land and real estate are physical; shares, mutual funds and deposits are financial.

DTI = Monthly debt servicing (principal + interest) ÷ Monthly income (above 35–40% is excessive)

Example →

Salary ₹15,000, loan repayments ₹7,500 → DTI 50%, too high.

Trap →

Use the full EMI (principal + interest), not just one part. If figures are annual, convert to monthly first.

Emergency fund ≈ 6 × Monthly expenses (laddered: some highly liquid, the rest slightly less liquid)

Example →

Monthly expenses ₹80,000 → target emergency corpus ₹4,80,000.

Trap →

The benchmark is months of expenses, not months of income. Review it yearly and whenever a new EMI is added.

Effective annual cost = (1 + monthly rate)¹² − 1

Example →

A card charging 3% a month → 1.03¹² − 1 = 42.6% a year, well above the naive 36%.

Trap →

The option '36% p.a.' is simple annualisation; the compounded effective rate is 42.6%.

Floating rate = Benchmark ± Spread · Internal benchmark: MCLR · External benchmark: e.g. repo rate (EBLR)

Example →

When the repo rate is cut, a repo-linked loan reprices at its next reset; an MCLR loan adjusts more slowly.

Trap →

Don't swap them: changes in the policy rate pass through faster to external-benchmark (repo-linked) loans than to MCLR loans.

Avalanche = highest interest rate first · Snowball = smallest balance first · Blizzard = snowball, then avalanche

Example →

Credit card ₹30k at 42%, personal loan ₹1.2L at 21%, car ₹1L at 12%, home ₹15L at 8%. Avalanche: CC → PL → Car → Home. Snowball: CC → Car → PL → Home.

Trap →

Definitions get swapped ('snowball = highest interest first'). Learn the general rule, not one example where both orders start the same way.

EPS = Profit after tax ÷ Number of outstanding equity shares

Example →

PAT ₹100 crore, 20 crore shares → EPS ₹5.

Trap →

Use profit after tax and outstanding shares, not profit before tax or authorised shares.

P/E = Market price per share ÷ EPS

Example →

Price ₹100, EPS ₹5 → P/E 20. With an industry average of 22, the stock looks relatively cheap.

Trap →

Trailing P/E uses the last 4 quarters' actual EPS; forward P/E uses the next 4 quarters' estimates. Questions mix the two.

P/B = Market price per share ÷ Book value per share · Book value per share = Shareholders' equity ÷ Shares outstanding

Example →

Price ₹200, book value ₹100 a share → P/B 2. Widely used for banks and financials.

Trap →

'A low P/B always means undervalued' is wrong; it can reflect impaired or overstated book assets.

P/S = Market capitalisation ÷ Trailing 12-month sales

Example →

Useful for loss-making companies; sales are harder to manipulate than earnings.

Trap →

For a heavily leveraged firm, use EV/Sales instead, because P/S ignores debt.

PEG = P/E ÷ Expected annual EPS growth rate (as a number, e.g. 25 for 25%)

Example →

P/E 20, expected growth 25% → PEG = 20 ÷ 25 = 0.8, undervalued relative to growth.

Trap →

PEG below 1 = undervalued, 1 = fair, above 1 = overvalued. Questions reverse this.

EV = Market cap + Market value of debt − Excess cash and equivalents

Example →

Market cap ₹800 crore + debt ₹300 crore − cash ₹50 crore = ₹1,050 crore.

Trap →

Cash is subtracted, not added. Use the market value of debt where it's given.

Dividend yield = Dividend per share ÷ Market price per share × 100

Example →

Price ₹40, dividend ₹2 a share → 5%.

Trap →

Use the current market price, not the face value. 'Dividend of 50% on face value' isn't the yield.

Earnings yield = EPS ÷ Market price × 100 = 1 ÷ (P/E)

Example →

EPS ₹25, price ₹500 → 5% (the inverse of a P/E of 20).

Trap →

Don't confuse it with dividend yield; earnings yield uses EPS, not DPS.

Market cap = Current market price × Total outstanding shares

Example →

Price ₹500 × 10 crore shares = ₹5,000 crore.

Trap →

Use the market price, not the face value, and total outstanding shares.

Price = Σ Coupon ÷ (1 + y)ᵗ + Face value ÷ (1 + y)ⁿ

Excel: PV(ytm, n, −coupon, −face)

Example →

10% annual coupon, face ₹100, 5 years, YTM 8% → 10 × 3.9927 + 100 × 0.6806 = ₹107.99 (premium, since coupon > YTM).

Trap →

With semi-annual coupons use n = 10, y = 4%, coupon ₹5 → ₹108.11. Questions forget to halve the rate and coupon.

Coupon yield = Annual coupon ÷ Face value

Example →

Coupon ₹8.24 on face ₹100 → 8.24%.

Trap →

Using the market price in the denominator gives the current yield, not the coupon yield.

Current yield = Annual coupon ÷ Current market price

Example →

Coupon ₹8.24, price ₹103 → 8.00%.

Trap →

Current yield ignores the capital gain or loss to maturity; that's why YTM differs from it.

Solve Price = Σ CFₜ ÷ (1 + YTM)ᵗ

Excel: RATE(n, coupon, −price, face) · YIELD(settle, maturity, rate, price, redemption, freq, basis)

Example →

G-Secs pay semi-annually: freq = 2. YTM is the bond's IRR.

Trap →

YTM assumes every coupon is reinvested at the YTM, which rarely happens. Don't use annual frequency for a semi-annual bond.

Par: Coupon = CY = YTM · Discount: Coupon < CY < YTM · Premium: Coupon > CY > YTM

Example →

Market rate 9%, coupon 8% → bond sells at a discount, with YTM 9% > current yield > 8% coupon.

Trap →

Questions reverse the ordering. Remember: price and yield move in opposite directions.

Macaulay duration = Σ [t × PV(CFₜ)] ÷ Bond price

Example →

A 5-year zero-coupon bond has a Macaulay duration of exactly 5 years.

Trap →

'Duration equals maturity for all bonds' is wrong; only for zero-coupon bonds. Coupon bonds have duration below maturity.

Modified duration = Macaulay duration ÷ (1 + periodic yield) · % price change ≈ −ModDur × Δy

Example →

Macaulay duration 6.50, YTM 8% → 6.50 ÷ 1.08 = 6.02, so the price falls about 6.02% if yield rises 1%.

Trap →

With semi-annual compounding divide by (1 + y/2), not (1 + y).

Dirty (invoice) price = Clean price + Accrued interest

Example →

Clean price ₹102 + accrued interest ₹1.50 → dirty price ₹103.50. Markets quote clean; trades settle at dirty.

Trap →

Yield formulas use the clean price, not the dirty price.

F = S + Cost of carry · Basis = Spot − Futures · At expiry F = S (basis = 0)

Example →

Spot ₹3,984, 27-day futures ₹4,032 → annualised return (48 ÷ 3,984) × (365 ÷ 27) = 16.29%. If it beats the funding cost, cash-and-carry arbitrage exists.

Trap →

'At expiry futures stay above spot because of interest' is wrong; the carry shrinks to zero and futures converge to spot.

Payoff = Max(Spot − Strike, 0) − Premium

Example →

Strike ₹100, premium ₹5: spot ₹112 → +₹7; spot ₹95 → −₹5 (maximum loss = premium).

Trap →

Forgetting to subtract the premium overstates profit. The buyer's maximum loss is the premium.

Payoff = Premium − Max(Spot − Strike, 0)

Example →

Strike ₹100, premium ₹5, spot ₹120 → 5 − 20 = −₹15. Maximum loss is unlimited.

Trap →

'The call writer's maximum loss is the premium' describes the buyer. The writer's loss is unlimited.

Payoff = Max(Strike − Spot, 0) − Premium

Example →

Strike ₹200, premium ₹8, spot ₹180 → 20 − 8 = +₹12. Maximum gain = strike − premium.

Trap →

A long put's gain is not unlimited; it's capped because the price can't fall below zero.

Payoff = Premium − Max(Strike − Spot, 0)

Example →

Strike ₹200, premium ₹8: spot ₹180 → 8 − 20 = −₹12; spot ₹210 → keeps the ₹8 premium.

Trap →

The put writer profits when the price stays above the strike, because the buyer won't exercise.

Call IV = Max(Spot − Strike, 0) · Put IV = Max(Strike − Spot, 0) · Time value = Premium − IV

Example →

Spot ₹110, strike ₹100 → call IV ₹10 (in the money); put IV 0 (out of the money).

Trap →

Intrinsic value can't be negative; it's floored at zero.

Initial margin = SPAN margin + Extreme loss margin (ELM) · Premium margin (option buyers) = Premium × Quantity

Example →

Higher volatility → higher SPAN margin → bigger margin requirement.

Trap →

Premium margin is collected from option buyers, not sellers.

NAV = (Total assets − Liabilities and expenses) ÷ Units outstanding

Example →

Net assets ₹500 crore, 50 crore units → NAV ₹10.

Trap →

Purchases and redemptions don't change NAV by themselves; units are issued or cancelled in proportion. NAV moves with the portfolio's market value and expenses.

Units = Amount invested ÷ Applicable NAV (fractions allowed)

Example →

₹10,000 at NAV ₹12.50 → 800 units.

Trap →

The applicable NAV depends on cut-off timing and when the fund receives clear funds, not when the order is placed.

IAF limit = lower of ₹50,000 or 90% of the investment value (per day, per scheme, per investor)

Example →

₹40,000 invested → min(₹50,000, ₹36,000) = ₹36,000.

Trap →

It's the lower of the two, and only for liquid funds, not all open-ended schemes.

Deduction up to ₹1,50,000 a year (old tax regime only) · Lock-in 3 years · Tax saved = Amount × marginal rate

Example →

₹1.5 lakh invested by someone in the 30% slab (old regime) → about ₹45,000 tax saved, before cess.

Trap →

The lock-in is 3 years, not 5 (5 years applies to solution-oriented retirement and children's funds). No deduction under the new regime.

Update:

The Income-tax Act, 2025 replaced the 1961 Act from 1 Apr 2026, so the old section number (80C) no longer applies; the deduction is described by what it does.

Short-term (held ≤ 12 months): 20% · Long-term (> 12 months): 12.5% on gains above ₹1.25 lakh a year

Example →

Long-term gain ₹3 lakh → (3 − 1.25) lakh × 12.5% = ₹21,875.

Trap →

Don't use the old rates (15% short-term; 10% above ₹1 lakh long-term). Both the rates and the exemption changed in July 2024.

Units of 'specified mutual funds' bought on or after 1 Apr 2023: gains taxed at the investor's slab rate, regardless of holding period, with no indexation

Example →

30% slab, ₹1 lakh gain on a debt fund held 4 years → ₹30,000 tax.

Trap →

Applying 20% with indexation is wrong for these units; that treatment ended for purchases from 1 Apr 2023.

Update:

From 1 Apr 2025 a 'specified mutual fund' means a fund with more than 65% in debt and money market instruments, so international funds and fund-of-funds aren't automatically taxed at slab rates any more.

Large cap ≥ 80% in companies ranked 1–100 · Mid cap ≥ 65% in 101–250 · Small cap ≥ 65% in 251+ · Multi cap ≥ 75% equity with ≥ 25% each in large, mid and small · Flexi cap ≥ 65% equity, no segment rule

Example →

Rankings follow the official AMFI list by full market capitalisation, not the fund's own view.

Trap →

Multi cap and flexi cap definitions get swapped; only multi cap has the 25/25/25 rule.

Focused fund: at most 30 stocks

Example →

A fund holding 45 stocks can't be categorised as a focused fund.

Trap →

The SEBI limit is 30, not 25 or 50.

Specialised Investment Fund (SIF) ₹10 lakh · PMS ₹50 lakh · AIF ₹1 crore

Example →

A client with ₹15 lakh and a sophisticated risk profile can invest in a SIF but not in PMS.

Trap →

The three thresholds are commonly swapped in question stems.

E(R) = Σ (Probabilityᵢ × Returnᵢ)

Excel: SUMPRODUCT(probabilities, returns)

Example →

Boom 0.3 × 15% + normal 0.5 × 10% + recession 0.2 × 2% = 9.9%.

Trap →

Check that the probabilities add up to 1 first.

σ² = Σ (Xᵢ − X̄)² ÷ (n − 1) · σ = √σ²

Excel: VAR.S(range) · STDEV.S(range)

Example →

Returns 10%, 14%, 8%, 12%: mean 11%, squared deviations sum to 20 → σ² = 20 ÷ 3 = 6.67, σ = 2.58%.

Trap →

Dividing by n instead of n − 1. Even 'all past data available to the adviser' is still a sample.

Cov(A,B) = ρ(A,B) × σA × σB

Example →

σA 5%, σB 8%, ρ 0.4 → 0.4 × 5 × 8 = 16 (%²).

Trap →

Covariance has no fixed range; −1 to +1 is the range of the correlation coefficient.

ρ(A,B) = Cov(A,B) ÷ (σA × σB) (range −1 to +1)

Example →

ρ = +1 → no diversification benefit; ρ = −1 → maximum benefit (risk can in theory fall to zero).

Trap →

Zero correlation doesn't eliminate risk; both variance terms remain.

E(Rp) = Σ wᵢ × Rᵢ

Excel: SUMPRODUCT(weights, returns)

Example →

A 0.2 × 9% + B 0.1 × 12% + C 0.3 × 15% + D 0.4 × 18% = 14.7%.

Trap →

Expected portfolio return is the weighted arithmetic mean, not a geometric average.

σp² = w₁²σ₁² + w₂²σ₂² + 2 w₁ w₂ ρ₁₂ σ₁ σ₂

Example →

Weights 0.5/0.5, σ₁ = σ₂ = 5%, ρ = 0.5 → 0.000625 × 3 = 0.001875 → σp = 4.33%.

Trap →

If covariance is given instead of ρ, don't multiply by σ₁σ₂ again. Portfolio SD is not the weighted average of SDs.

Covariance terms = (n² − n) ÷ 2 (plus n variance terms)

Example →

50 securities → (2,500 − 50) ÷ 2 = 1,225 covariances plus 50 variances.

Trap →

Not n² or n(n + 1) ÷ 2; the correct count is n(n − 1) ÷ 2.

HPR = [Income + (End value − Begin value)] ÷ Begin value

Example →

₹1 lakh grows to ₹1.2 lakh plus ₹5,000 dividend → (5,000 + 20,000) ÷ 1,00,000 = 25%.

Trap →

Leaving out the income shows 20% instead of 25%. Annualise HPRs for periods longer than a year.

TWRR = [Π (1 + HPRᵢ)]^(1/n) − 1 (chain-linked sub-period returns)

Example →

Yearly returns −5%, −15.2%, 8.1%, 30.75%, 17.65% → product 1.3396 → 6.02% a year.

Trap →

Taking the arithmetic mean (7.26%) overstates it. TWRR removes the effect of client cash flows; SEBI mandates TWRR for PMS performance disclosure.

MWRR = IRR of all client cash flows (contributions, withdrawals and ending value)

Excel: IRR(values) · XIRR(values, dates)

Example →

Answers 'how much did this client actually earn?', so it's sensitive to the timing and size of contributions.

Trap →

Don't confuse it with TWRR. MWRR suits client-level reports; manager comparison and PMS disclosure use TWRR.

AMR = ΣR ÷ n · GMR = [Π (1 + Rᵢ)]^(1/n) − 1 · GMR ≤ AMR

Example →

Returns −50% then +100% → AMR 25%, but GMR 0% (the money is flat).

Trap →

AMR presented as the actual long-run return is wrong; GMR (CAGR) reflects what the investor earned.

CAGR = (End ÷ Begin)^(1/t) − 1

Example →

₹1,00,000 → ₹1,33,960 in 5 years → 1.3396^0.2 − 1 = 6.02%.

Trap →

Not appropriate for periods under one year.

Post-tax = Pre-tax × (1 − t) · Pre-tax = Post-tax ÷ (1 − t)

Example →

Pre-tax 5% at a 15% tax rate → 4.25% post-tax. Needing 8.4% post-tax in the 30% slab → 12% pre-tax.

Trap →

Multiply by (1 − t); don't subtract the tax rate from the return.

Adjusted return = (w_equity × R_equity + w_cash × R_cash) ÷ Total capital

Example →

₹100 lakh: ₹75 lakh in equity at 10%, ₹25 lakh in liquid funds at 4% → (7.5 + 1) ÷ 100 = 8.5%, not 10%.

Trap →

Reporting the return only on the invested ₹75 lakh inflates it. Measure on total capital.

βp = Σ wᵢ × βᵢ (weighted average)

Example →

A: β 1.2 at 60%, B: β 1.1 at 40% → 0.72 + 0.44 = 1.16.

Trap →

Beta is linear in weights, but portfolio SD isn't; SD needs the correlations.

Required return = Rf + β × (Rm − Rf)

Example →

Rf 5%, β 1.5, Rm 15% → 5 + 1.5 × 10 = 20%.

Trap →

If the equity risk premium (Rm − Rf) is given directly, don't subtract Rf from it again.

α = Rp − [Rf + β × (Rm − Rf)]

Example →

Rp 25%, Rf 5%, β 1.5, Rm 15% → 25 − 20 = +5%.

Trap →

Alpha isn't 'return over the benchmark' (25 − 15 = 10%); it's return over the CAPM-required return.

Sharpe = (Rp − Rf) ÷ σp (total risk)

Example →

Rp 10.50%, Rf 5.50%, σ 6.50% → 5 ÷ 6.50 = 0.769.

Trap →

Using β in the denominator gives Treynor. Sharpe suits a standalone (only) portfolio.

Treynor = (Rp − Rf) ÷ βp (systematic risk only)

Example →

Rp 10.50%, Rf 5.50%, β 1 → 5.0 (percentage points of excess return per unit of beta).

Trap →

Treynor suits a holding within an already well-diversified portfolio, not an under-diversified one.

Sortino = (Rp − Rf) ÷ Downside (semi) standard deviation

Example →

Only downside volatility is penalised, which suits investors who define risk as the chance of losing money.

Trap →

Using total SD in the denominator gives Sharpe, not Sortino.

IR = (Rp − Rb) ÷ Tracking error · Tracking error = SD(Rp − Rb)

Example →

Active return 2%, tracking error 4% → IR 0.50. It shows whether alpha comes from skill or luck.

Trap →

The denominator is the SD of the return difference (tracking error), not the portfolio's total SD. Tracking error isn't the same as tracking difference.

w = σm ÷ σp · M² return = w × Rp + (1 − w) × Rf

Example →

Rp 35%, σp 42%; Rm 28%, σm 30%; Rf 6% → w = 0.714 → M² = 26.7%, below the market's 28%: underperformed on a risk-adjusted basis.

Trap →

Comparing raw returns (35% > 28%) is wrong; first scale the portfolio to market risk with T-bills.

Net selectivity = (Rp − Rf) − [(Rm − Rf) ÷ σm × σp]

Example →

Rp 18%, Rf 6%, Rm 14%, σm 15%, σp 20% → 12 − 10.67 = 1.33%. Positive means genuine selection skill.

Trap →

Not Jensen's alpha: Fama scales by total risk (σ), Jensen uses systematic risk (β).

₹ return ≈ Local-currency return + % change in the exchange rate (₹ per foreign unit)

Example →

₹50 lakh at ₹70/$ = $71,428.57; earns 15% → $82,142.86; rupee appreciates to ₹65/$ → ₹53.39 lakh, a ₹ return of 6.79%.

Trap →

Rupee appreciation reduces the ₹ return on foreign assets; depreciation adds to it.