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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Concept and Role of a Mutual Fund

A mutual fund scheme has net assets of Rs 252 crore on a day, and 12 crore units are outstanding. An investor invests Rs 50,000 in the scheme at this NAV, ignoring any load. How many units will she be allotted?

She will be allotted about 2,381 units. NAV equals net assets divided by outstanding units, which is Rs 252 crore divided by 12 crore, or Rs 21. Dividing the Rs 50,000 investment by Rs 21 gives roughly 2,381 units.

  1. A2,381 units, using NAV of Rs 21Correct
  2. B2,500 units, using NAV of Rs 20
  3. C2,000 units, using NAV of Rs 25
  4. D2,100 units, using NAV of Rs 23.81

Explanation

NAV = 252 crore / 12 crore units = Rs 21 per unit. Units = 50,000 / 21 = 2,380.95, which rounds to about 2,381 units. The other options use NAVs that are not derived from the data.

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