Skip to content

NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Net Asset Value, Total Expense Ratio and Pricing of Units

Under SEBI rules, for a purchase of units in an open-ended equity scheme through a valid application with funds available for utilisation before the cut-off time, which NAV applies?

The applicable NAV is that of the day on which the funds are available for utilisation by the scheme, provided the valid application is received before the cut-off time, which is 3 pm for most schemes. Later receipt gets the next business day's NAV.

  1. ANAV of the day on which funds are available for utilisation, if received before cut-offCorrect
  2. BNAV of the next business day always
  3. CAverage NAV of the week
  4. DNAV of the previous month-end

Explanation

For purchases of amounts under Rs 2 lakh in non-liquid schemes, the applicable NAV is that of the day funds are available for utilisation, provided the application is received before the cut-off time (3 pm). Other options do not reflect SEBI's rule.

Did you get it right without looking?

One question tells you little. A timed set on Net Asset Value, Total Expense Ratio and Pricing of Units shows your real accuracy, how long you take and where you lose marks.

Practise Net Asset Value, Total Expense Ratio and Pricing of UnitsFree diagnostic mock

More Net Asset Value, Total Expense Ratio and Pricing of Units questions