NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Concept and Role of a Mutual Fund
An investor invests Rs 50,000 in a scheme at an NAV of Rs 25.00 per unit. Ignoring any load, stamp duty or charges, how many units are allotted?
The investor receives 2,000 units. Units allotted equal the amount invested divided by the NAV per unit, so Rs 50,000 divided by Rs 25 gives 2,000 units, assuming no load, stamp duty or other charges are deducted.
- A1,250 units
- B2,000 unitsCorrect
- C2,500 units
- D200 units
Explanation
Units allotted = amount invested divided by NAV = 50,000 / 25 = 2,000 units. Check: 2,000 x 25 = 50,000. The option of 1,250 wrongly multiplies the NAV by 25 and divides by 1,000, and 2,500 uses an NAV of Rs 20.
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