The redemption price of Motilal Mutual Fund unit is ₹54 while the front end load and back end load charges are 2% and 3% respectively. Compute: (ii) Public Offer Price per unit.
CS Executive · Capital Markets & Securities Laws · PYQS · December 2018
The redemption price of Motilal Mutual Fund unit is ₹54 while the front end load and back end load charges are 2% and 3% respectively. Compute: (ii) Public Offer Price per unit.
Answer & Explanation:
(ii) Public Offer Price per unit: Public Offer Price = NAV / (1 - Front end load) Public Offer Price = NAV / (1 - 0.02) Public Offer Price = 55.62 / 0.98 Public Offer Price = ₹56.755 per unit
Topics: Mutual Funds
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