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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Operational Aspects of Investment Management

Mr Sharma, a client of an investment adviser, invests Rs 2,00,000 in a mutual fund scheme at a NAV of Rs 25.00 per unit with an entry load of zero. Later the NAV is Rs 30.00 and he redeems all units with an exit load of 1%. What amount does he receive?

Mr Sharma receives Rs 2,37,600. He holds 8,000 units worth Rs 2,40,000 at NAV Rs 30, and the 1% exit load of Rs 2,400 is deducted from the redemption proceeds.

  1. ARs 2,40,000
  2. BRs 2,37,600Correct
  3. CRs 2,38,800
  4. DRs 2,42,400

Explanation

Units = 200000/25 = 8,000. Redemption value = 8,000 x 30 = Rs 2,40,000. Exit load 1% = Rs 2,400, so he receives Rs 2,37,600. Rs 2,40,000 ignores the load; Rs 2,42,400 adds the load; Rs 2,38,800 applies 0.5%.

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