n NISM Certifications
V-A NISM Series V-A
Medium

How does the Net Asset Value (NAV) of a mutual fund scheme reflect the scheme's expenses?

Practice question from Net Asset Value, Total Expense Ratio and Pricing of Units Test — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The expenses are added to the NAV

  2. The NAV reflects the adjustment for the fees and expenses charged to the scheme.

    Correct answer

  3. C

    Expenses do not affect the NAV.

  4. D

    Expenses are only reflected in the Total Expense Ratio (TER), not the NAV

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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