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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 40 crore units outstanding. Its liabilities are already deducted in the net assets figure. An investor invests Rs 65,000 at this NAV with no load. How many units does the investor receive?

The investor receives 5,000 units. NAV equals net assets of Rs 520 crore divided by 40 crore units, which is Rs 13 per unit. Dividing the Rs 65,000 investment by Rs 13 gives 5,000 units, since there is no load.

  1. A5,000 unitsCorrect
  2. B6,500 units
  3. C4,000 units
  4. D5,200 units

Explanation

NAV = 520 crore / 40 crore = Rs 13 per unit. Units = 65,000 / 13 = 5,000. Check: 5,000 x 13 = 65,000. Using 10 as the face value would give 6,500, which wrongly ignores the actual NAV.

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