NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investor Services
Ms. Rao redeems units on a day when the scheme NAV is Rs 50.00. The scheme has an exit load of 1% for redemption within one year, and she redeems 2,000 units within the period. What is the amount payable to her before any tax?
She receives Rs 99,000. The 2,000 units at NAV Rs 50 are worth Rs 1,00,000, and the 1% exit load of Rs 1,000 is deducted because redemption is within one year. Exit load reduces, never increases, the payout.
- ARs 1,00,000
- BRs 99,000Correct
- CRs 1,01,000
- DRs 98,000
Explanation
Gross redemption value is 2,000 x 50 = Rs 1,00,000. Exit load of 1% is Rs 1,000, deducted from the NAV applied, so the payout is Rs 99,000. Adding the load gives Rs 1,01,000 which is wrong; ignoring it gives Rs 1,00,000.
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