NISM PracticeNISM formula sheet
34 formulas for the mutual fund, derivatives and research papers, each with a one-line example. Print it and keep it beside the workbook.
Mutual funds
| Measure | Formula | Example |
|---|---|---|
| NAV per unit | (Market value of assets − Liabilities) ÷ Units outstanding | (₹105 crore − ₹5 crore) ÷ 5 crore units = ₹20 |
| Units allotted | Amount invested ÷ Applicable NAV | ₹10,000 ÷ ₹25 = 400 units |
| Redemption price with exit load | NAV × (1 − Exit load %) | ₹50 × (1 − 1%) = ₹49.50 |
| Absolute return | (End value − Beginning value) ÷ Beginning value × 100 | (23 − 20) ÷ 20 × 100 = 15% |
| Simple annualised return | Absolute return × 12 ÷ Number of months | 15% × 12 ÷ 6 = 30% |
| CAGR | (End value ÷ Beginning value)^(1 ÷ years) − 1 | (14,400 ÷ 10,000)^(1/2) − 1 = 20% |
| Average cost in an SIP | Total amount invested ÷ Total units bought | ₹3,000 ÷ 190 units = ₹15.79 |
| Sharpe ratio | (Scheme return − Risk-free return) ÷ Standard deviation | (12 − 6) ÷ 10 = 0.6 |
| Rule of 72 | Years to double ≈ 72 ÷ Rate of return % | 72 ÷ 8 = 9 years |
Futures
| Measure | Formula | Example |
|---|---|---|
| Profit of a buyer | (Exit price − Entry price) × Lot size × Lots | (1,040 − 1,000) × 100 = ₹4,000 |
| Profit of a seller | (Entry price − Exit price) × Lot size × Lots | (500 − 520) × 200 = −₹4,000 |
| Contract value | Futures price × Lot size | 20,000 × 50 = ₹10,00,000 |
| Fair price (cost of carry) | Spot × (1 + r × t) − Expected dividend | 1,000 × (1 + 0.12 × 1/12) = ₹1,010 |
| Basis | Spot price − Futures price | 1,000 − 1,010 = −₹10 |
| Futures to sell for a hedge | Portfolio value × Portfolio beta | ₹10,00,000 × 1.2 = ₹12,00,000 |
Options
| Measure | Formula | Example |
|---|---|---|
| Call payoff at expiry | Greater of (Spot − Strike) and 0 | Spot 112, strike 100: payoff ₹12 |
| Put payoff at expiry | Greater of (Strike − Spot) and 0 | Spot 185, strike 200: payoff ₹15 |
| Buyer's profit | Payoff − Premium | 12 − 5 = ₹7 |
| Seller's profit | Premium − Payoff | 5 − 12 = −₹7 |
| Break-even, call | Strike + Premium | 100 + 5 = ₹105 |
| Break-even, put | Strike − Premium | 200 − 8 = ₹192 |
| Intrinsic value of a call | Greater of (Spot − Strike) and 0 | Spot 100, strike 90: ₹10 |
| Time value | Premium − Intrinsic value | 14 − 10 = ₹4 |
Equity and debt analysis
| Measure | Formula | Example |
|---|---|---|
| Earnings per share (EPS) | Profit after tax available to equity holders ÷ Number of equity shares | ₹50 crore ÷ 5 crore shares = ₹10 |
| Price to earnings (P/E) | Market price per share ÷ EPS | ₹200 ÷ ₹10 = 20 times |
| Price to book (P/B) | Market price per share ÷ Book value per share | ₹200 ÷ ₹80 = 2.5 times |
| Return on equity (ROE) | Profit after tax ÷ Shareholders' equity × 100 | ₹50 crore ÷ ₹250 crore = 20% |
| Dividend yield | Dividend per share ÷ Market price × 100 | ₹4 ÷ ₹200 = 2% |
| Dividend payout ratio | Dividend per share ÷ EPS × 100 | ₹4 ÷ ₹10 = 40% |
| Debt to equity | Total debt ÷ Shareholders' equity | ₹100 crore ÷ ₹250 crore = 0.4 |
| Interest coverage | Earnings before interest and tax ÷ Interest expense | ₹90 crore ÷ ₹15 crore = 6 times |
| Market capitalisation | Market price × Number of shares outstanding | ₹200 × 5 crore = ₹1,000 crore |
| Current yield of a bond | Annual coupon ÷ Market price × 100 | ₹80 ÷ ₹1,000 = 8% |
| Price after a bonus issue | Old price × Old shares ÷ (Old shares + Bonus shares) | 1:1 bonus at ₹200: 200 × 1 ÷ 2 = ₹100 |
How to learn formulas
A formula read is forgotten in a day; a formula used five times stays. For each line above, cover the example, make up your own numbers and work it. Then do it backwards: given the NAV and the units, find the amount; given the break-even and the strike, find the premium. Examination questions often turn a formula round in this way, and a candidate who has only memorised its usual direction is stuck.
Say what each formula means in words. "CAGR is the yearly rate which, compounded, takes the beginning value to the end value" is more useful than the symbols, because it tells you when the measure applies and what it hides. "Basis is spot minus futures, and it shrinks to nothing at expiry" answers three different questions.
Units and signs
- Returns are percentages; ratios such as P/E and interest coverage are "times"; payoffs and profits are rupees per share until multiplied by the lot size.
- A negative profit is a loss. Keep the sign through the calculation and interpret it at the end.
- Convert the period before using a rate: an annual rate for one month is multiplied by 1/12.
- Round only at the last step.
What is not here
This sheet has no tax rates, expense limits, margin percentages, lot sizes or other figures set by the regulator or the exchanges. They change, and a sheet that states them is soon wrong. Take them from the current NISM workbook. The examples use round, made-up numbers.
Worked in full
The formulas are explained step by step in NAV and returns, option payoffs and futures pricing. Test them in the practice test.
Questions candidates ask
Is a formula sheet given in the NISM exam?
We did not find a statement about this on the pages we read. Assume you must know the formulas, and check NISM's candidate instructions.
Which formulas matter most for the mutual fund exam?
NAV, units allotted, exit load, absolute return, annualised return and CAGR.
Which formulas matter most for equity derivatives?
Futures profit and loss, cost of carry pricing, basis, option payoff, break-even, intrinsic value and time value.
An independent practice site. NISM is the National Institute of Securities Markets. This site is not connected with, approved by or paid by NISM or SEBI, and uses none of their logos. The questions are our own; none is taken from NISM's question bank, workbooks or mock tests, and a score here does not predict a result. Examination facts were read on nism.ac.in on 12 November 2026 and can change: check the page of your module on nism.ac.in before you pay or prepare. Nothing here is investment advice.