NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Net Asset Value, Total Expense Ratio and Pricing of Units
A scheme has NAV of ₹40.00 and an exit load of 1% applies to the redemption. An investor redeems 1,000 units. What amount is paid out, ignoring taxes?
The payout is ₹39,600. The exit load is deducted from the NAV, giving a redemption price of ₹39.60 per unit, and multiplying by 1,000 units gives ₹39,600.
- A₹40,000
- B₹39,600Correct
- C₹40,400
- D₹39,000
Explanation
Redemption price = 40 × (1 - 0.01) = ₹39.60. Proceeds = 1,000 × 39.60 = ₹39,600. ₹40,400 wrongly adds the load.
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