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

Ms. Janhvi invests Rs 2,00,000 in an equity fund. The face value of this scheme is Rs 10 and the NAV is Rs 40. The exit load is 1%. How many units will be allotted to Ms. Janhvi?

Practice question from Nism VA Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    4950

  2. 5000

    Correct answer

  3. C

    7474.66

  4. D

    20000

Why this is the answer

The exit load applies when selling units, not when purchasing them. Therefore, the exit load does not affect the units allotted. Units allotted = 2,00,000 / 40 = 5000 units.

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