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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Scheme Related Information

A mutual fund scheme's face value is Rs 10 per unit. During the NFO, an investor applies for Rs 1,00,000 of units at the face value with no load. The fund later declares IDCW of 15% on face value. What IDCW does the investor receive?

The investor receives Rs 15,000. At Rs 10 face value, Rs 1,00,000 buys 10,000 units. An IDCW of 15% of face value is Rs 1.50 per unit, so 10,000 units yield Rs 15,000 in total.

  1. ARs 15,000Correct
  2. BRs 1,500
  3. CRs 10,000
  4. DRs 1,50,000

Explanation

Units = 1,00,000 / 10 = 10,000. IDCW of 15% of face value = Rs 1.50 per unit. Total = 10,000 x 1.50 = Rs 15,000. Rs 1,500 results from a decimal slip and Rs 1,50,000 from applying 15% to the invested sum multiplied by ten.

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