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

A scheme has net assets of Rs 252 crore (after all liabilities and expenses) and 12 crore units outstanding. An investor holding 5,000 units redeems them at NAV with no exit load. What redemption amount does the investor receive?

The investor receives Rs 1,05,000. NAV is net assets of Rs 252 crore divided by 12 crore units, which equals Rs 21 per unit, and multiplying by 5,000 units gives Rs 1,05,000 since there is no exit load.

  1. ARs 1,05,000Correct
  2. BRs 1,00,000
  3. CRs 1,26,000
  4. DRs 1,20,000

Explanation

NAV = 252 crore / 12 crore = Rs 21 per unit. Redemption = 5,000 x 21 = Rs 1,05,000. Rs 1,26,000 would come from wrongly using NAV of Rs 25.2, and Rs 1,00,000 from using the Rs 20 face-value-style figure.

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