CMA Final · Strategic Financial Management · Mutual Funds
A mutual fund scheme has net assets of ₹48,00,000 after deducting liabilities, and 1,20,000 units are outstanding. The scheme charges an exit load of 1% on redemption. What is the redemption price per unit?
The redemption price is ₹39.60 per unit. NAV is ₹40 (48,00,000 divided by 1,20,000 units), and a 1% exit load is deducted from NAV on redemption, giving 40 × 0.99 = ₹39.60.
- A₹39.60Correct
- B₹40.00
- C₹40.40
- D₹36.00
Explanation
NAV = 48,00,000 / 1,20,000 = ₹40. Exit load of 1% is deducted from NAV: 40 × 0.99 = ₹39.60. Option ₹40.40 wrongly adds the load, as if it were an entry load.
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