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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Scheme Related Information

An investor invests in a scheme with an exit load of 1% if units are redeemed within 12 months. She redeems 500 units at an NAV of Rs 40 after 8 months. What is the redemption proceeds, ignoring other charges and taxes?

The proceeds are Rs 19,800. The gross value of 500 units at Rs 40 is Rs 20,000, and since redemption occurs within 12 months a 1% exit load of Rs 200 is deducted from that amount.

  1. ARs 20,000
  2. BRs 19,800Correct
  3. CRs 20,200
  4. DRs 19,600

Explanation

Redemption value = 500 x 40 = Rs 20,000. Because redemption is within 12 months, exit load = 1% of 20,000 = Rs 200. Proceeds = 20,000 - 200 = Rs 19,800. Rs 20,200 wrongly adds the load.

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