NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Net Asset Value, Total Expense Ratio and Pricing of Units
An investor invests ₹50,000 in a scheme when the applicable NAV is ₹25.00. Ignoring any load and stamp duty, how many units are allotted?
The investor gets 2,000 units. Units allotted equal the amount invested divided by the applicable NAV, so ₹50,000 divided by ₹25 gives 2,000 units when no load is charged.
- A1,250
- B2,500
- C2,000Correct
- D1,000
Explanation
Units = 50,000 / 25 = 2,000. Dividing by wrong figures gives the other options.
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