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

Identify the TRUE statement. (A) While calculating scheme returns for an investor, if there is an entry load, then the initial value of the Net Asset Value (NAV) is taken as NAV plus Entry Load (B) While calculating scheme returns for an investor, if there is an exit load, then the later value of the Net Asset Value (NAV) is taken as NAV plus Exit Load

Practice question from NISM Series V A - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Only A

  2. Only B

    Correct answer

  3. C

    Both A and B

Why this is the answer

If there is an exit load on a scheme, then while calculating the scheme returns, the later value of the Net Asset Value (NAV) is taken as NAV minus the exit load, as the sale value decreases due to the exit load. (Note: Entry load has now been banned by SEBI.)

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