NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Net Asset Value, Total Expense Ratio and Pricing of Units
An investor invests Rs 50,000 in a regular plan when the NAV is Rs 25.00. The scheme has no entry load, as per SEBI rules. How many units are allotted, ignoring stamp duty?
The investor receives 2,000 units. Since SEBI does not permit entry loads, units are allotted at the NAV of Rs 25, so Rs 50,000 divided by Rs 25 equals 2,000 units.
- A2,000 unitsCorrect
- B1,950 units
- C2,050 units
- D1,800 units
Explanation
SEBI prohibits entry loads, so the purchase price equals NAV. Units = 50,000 / 25 = 2,000. Other options wrongly assume a load or deduction.
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