The redemption price of a mutual fund unit is ₹ 48 while the front-end load and back-end load charges are 2% and 3% respectively. Compute: (i) NAV per unit

CS Executive · Capital Markets & Securities Laws · PYQS · June 2017
The redemption price of a mutual fund unit is ₹ 48 while the front-end load and back-end load charges are 2% and 3% respectively. Compute: (i) NAV per unit

Answer & Explanation:

(i) Computation of Net Asset Value per unit Redemption Price = NAV / (1 + back end load) ₹ 48 = NAV / (1 + 0.03) NAV = ₹ 49.44

Topics: Mutual Funds

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