Assignment

Assignment

Assignment

Calculate Mutual Fund Profit

Objective:
Create a class or a function to calculate the profit for a mutual fund investment.

Function/Class Signature:

calculate_profit(scheme_code, start_date, end_date, capital=1000000.0)

Parameters:

  1. scheme_code (str): The unique scheme code of the mutual fund.
  2. start_date (str – dd-mm-yyyy): The purchase date of the mutual fund.
  3. end_date (str – dd-mm-yyyy): The redemption date of the mutual fund.
  4. capital (float, optional): The initial investment amount (default: 1000000.0).

Example:

Let’s assume you invested ₹1,000,000 in a mutual fund with scheme code 101206 on 26-07-2023 and redeemed it on 18-10-2023. To calculate the profit, follow these steps:

  1. Get the Net Asset Value (NAV) of the mutual fund on both the purchase date (26-07-2023) and redemption date (18-10-2023) using the API: https://api.mfapi.in/mf/101206.

    • NAV on 26-07-2023: 3682.28990
    • NAV on 18-10-2023: 3737.30240

  2. Calculate the number of units allotted on the purchase date:

    Number of units allotted on 26-07-2023 = Initial investment / NAV on 26-07-2023
Number of units allotted on 26-07-2023 = 1000000 / 3682.28990 = 271.57 units

  3. Calculate the value of the units on the redemption date:

    Value of 271.57 units as on 18-10-2023 = Number of units allotted on 26-07-2023 * NAV on 18-10-2023
Value of 271.57 units as on 18-10-2023 = 271.57 * 3737.30240 = 1014939.75

Calculate the net profit:

Net Profit = Value on redemption date - Initial investment
Net Profit = 1014939.75 - 1000000 = 14939.75
Task:
  • Create a Python function or class that performs these calculations and returns the net profit. Make sure to handle date formatting, API requests, and all necessary calculations within the function or class.
  • Create a FastAPI app with single route /profit that takes query string params scheme_code, start_date, end_date, capital. The request would essentially will look like /profit?scheme_code=101206& start_date= 26-07-2023&end_date=18-10-2023&capital=1000000. Use the Python function to calculate profit.
  • Follow FastAPI best practices mentioned at https://github.com/zhanymkanov/fastapi-best-practices
  • Create a public repo on Github, push your code & send the repo url to priyank@koffi.com.
Important:
  • If start_date or end_date is not present in the data, use the next available date. So if 22-10-2023 is not available in the data, use 23-10-2023. If 23-10-2023 also not available, use 24-10-2023 and so on.
  • You can append scheme_code to https://api.mfapi.in/mf/<scheme_code> to get the data.
  • Bonus points for unit tests using pytest.
  • Bonus points for using a good  software architecture. You can refer Architecture Patterns with Python  book.