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: (ii) Public offer price of the 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: (ii) Public offer price of the unit.
Answer & Explanation:
(ii) Computation of Public Offer price of the unit = NAV / (1 - Front end load) = 49.44 / (1 - 0.02) = ₹ 50.45
Topics: Mutual Funds
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