NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Scheme Related Information
A scheme's NAV is ₹50 and the exit load is 1% if redeemed within one year. Rohan redeems 2,000 units after 8 months. Ignoring any other charges, what amount does he receive?
Rohan receives ₹99,000. The exit load of 1% applies because he redeemed within one year, so the redemption price is 50 × 0.99 = ₹49.50 per unit. Multiplying by 2,000 units gives ₹99,000, which is ₹1,000 less than the gross NAV value.
- A₹1,00,000
- B₹99,000Correct
- C₹1,01,000
- D₹98,000
Explanation
Redemption price = NAV × (1 − exit load) = 50 × 0.99 = ₹49.50 per unit. For 2,000 units this is ₹99,000. Paying ₹1,00,000 ignores the load, and ₹1,01,000 wrongly adds the load instead of deducting it.
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