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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Mutual Funds

Ms. Rao invests Rs 50,000 in a mutual fund scheme with an exit load of 1% if units are redeemed within one year. The NAV at purchase is Rs 25. She redeems all units after 6 months when NAV is Rs 30. Ignoring taxes and other costs, what amount does she receive?

She receives Rs 59,400. She holds 2,000 units, which are worth Rs 60,000 at the NAV of Rs 30, and the 1% exit load of Rs 600 applies because redemption happens within one year.

  1. ARs 60,000
  2. BRs 59,400Correct
  3. CRs 49,500
  4. DRs 58,800

Explanation

Units = 50,000/25 = 2,000. Redemption value = 2,000 x 30 = Rs 60,000. Exit load 1% = Rs 600, so she receives Rs 59,400. Rs 60,000 ignores the load; Rs 49,500 applies the load to the wrong base and NAV.

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