NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Scheme Related Information
An investor holds units of an open-ended scheme with an exit load of 1% if redeemed within 1 year. She redeems 500 units on a day when NAV is Rs 40.00, within the exit load period. What amount does she receive, ignoring other charges?
She receives Rs 19,800. Gross redemption value is 500 units times Rs 40, which is Rs 20,000. The 1% exit load, Rs 200, is deducted from this, leaving Rs 19,800 as the net proceeds.
- ARs 19,800Correct
- BRs 20,200
- CRs 19,000
- DRs 20,000
Explanation
Redemption value is 500 x 40 = Rs 20,000. Exit load is 1% of NAV, which is Rs 200. Net proceeds are 20,000 - 200 = Rs 19,800. Adding the load gives Rs 20,200, which is the sign error; Rs 20,000 ignores the load.
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