NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Collective Investment Vehicles
A mutual fund scheme has net assets of Rs 520 crore and 20 crore units outstanding. An investor invests Rs 1,30,000 in a scheme with no entry load at this NAV. How many units does the investor receive?
The investor receives 5,000 units. NAV per unit is Rs 520 crore divided by 20 crore units, which is Rs 26, and Rs 1,30,000 divided by Rs 26 gives 5,000 units, since there is no entry load.
- A5,000 unitsCorrect
- B4,000 units
- C6,500 units
- D2,600 units
Explanation
NAV per unit = 520 crore / 20 crore = Rs 26. Units = 1,30,000 / 26 = 5,000. Check: 5,000 x 26 = 1,30,000. Using 2,600 would come from dividing by 50, which is the wrong base.
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