NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investor Services
Ms. Iyer holds 2,000 units of a scheme and gives a Systematic Withdrawal Plan (SWP) instruction to withdraw ₹10,000 per month. If the NAV on the withdrawal date is ₹25.00 and no exit load applies, how many units will be redeemed for that instalment?
The units redeemed are the withdrawal amount divided by the NAV: ₹10,000 divided by ₹25 equals 400 units. Total holding of 2,000 units does not affect the number redeemed in one SWP instalment.
- A250 units
- B400 unitsCorrect
- C4,000 units
- D2,500 units
Explanation
Units redeemed = amount / NAV = 10,000 / 25 = 400 units. Check: 400 x 25 = 10,000. The figure 250 wrongly divides NAV by amount scale, and 2,000 total units is irrelevant to the instalment.
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