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

Mr. Suresh invests Rs 30000 in an equity fund. The face value of this scheme is Rs 10 and the NAV is Rs 12. The exit load is 2%. How many units will be allotted to Mr. Suresh?

Practice question from NISM Series V A - Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    3000

  2. B

    2142.8571

  3. 2500

    Correct answer

  4. D

    2411.1574

Why this is the answer

The exit load applies only when redeeming units, not when purchasing them. Therefore, the units will be allotted based on the NAV of Rs 12. Units allotted = Rs 30,000 ÷ Rs 12 = 2500 units.

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