Fortune Mutual Fund launched a special scheme, the details of which are given below: NAV ₹ 14 per unit, Redemption price ₹ 13.50 per unit, Offer Price ₹ 14.75 per unit. You are required to compute: (i) Back End Load (ii)

Computation of Back End Load (BEL) Let the Back end load be x NAV = Redemption price * (1+BEL) 14 = 13.50 * (1+x) 14 = 13.50 + 13.50x 13.50x = 0.50 x = 0.50 / 13.5 = 3.70% Computation of Front End Load (FEL) Let the Front end load be x NAV = Public offer price * (1-FEL) 14 = 14.75 * (1-x) 14 = 14.75 - 14.75x 14.75x = 0.75 x = 0.75 / 14.75 = 5.08%