NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Mutual Funds
A mutual fund scheme has an NAV of Rs 50.00 per unit and an exit load of 1% applicable if units are redeemed within one year. Ms. Kavita redeems 1,000 units after six months. What amount will she receive, ignoring taxes and other charges?
She receives Rs 49,500. The gross redemption value is 1,000 units times Rs 50, which is Rs 50,000. Because redemption happens within one year, a 1% exit load of Rs 500 is deducted from the proceeds, leaving Rs 49,500.
- ARs 49,500Correct
- BRs 50,000
- CRs 50,500
- DRs 45,000
Explanation
Redemption value before load = 1,000 x 50 = Rs 50,000. Exit load = 1% of 50,000 = Rs 500. Net proceeds = 50,000 - 500 = Rs 49,500. Rs 50,500 wrongly adds the load instead of deducting it.
Did you get it right without looking?
One question tells you little. A timed set on Mutual Funds shows your real accuracy, how long you take and where you lose marks.
More Mutual Funds questions
- Mr. Arvind invests Rs 1,20,000 in a scheme at an NAV of Rs 24.00 per unit with no entry load. After two years the NAV is Rs 30.00 and he red…
- A mutual fund scheme has net assets of Rs 500 crore after accruing all liabilities and has 20 crore units outstanding. What is its NAV per u…
- Rohan invests Rs 5,000 on the first of each month through a SIP for three months. The NAVs on the three dates are Rs 20, Rs 25 and Rs 20 res…
- An investor holds units of an equity-oriented mutual fund and sells them 18 months after purchase at a profit. For tax purposes in India, ho…
- Which of the following is a feature of a Systematic Transfer Plan (STP) in a mutual fund?
- Mr. Kapoor, aged 35, has a high risk appetite, a 15-year horizon and wishes to invest regularly each month in equity funds to smooth out pur…