NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investor Services
Meera holds 2,000 units in a scheme with an exit load of 1% if redeemed within 1 year. She redeems all units after 8 months at an NAV of Rs 50 per unit. Her stamp duty and other charges are to be ignored. What amount will she receive?
Meera receives Rs 99,000. Her units are worth Rs 1,00,000 (2,000 x Rs 50), and because she redeems within one year, a 1% exit load of Rs 1,000 is deducted from the redemption value.
- ARs 1,00,000
- BRs 99,500
- CRs 99,000Correct
- DRs 1,01,000
Explanation
Gross redemption value = 2,000 x 50 = Rs 1,00,000. Exit load = 1% of NAV applies since redemption is within 1 year, i.e., Rs 1,000. Net proceeds = Rs 99,000. Rs 99,500 would result from using 0.5% and Rs 1,00,000 ignores the load.
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