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

Ms. Shweta purchases through a distributor 5000 units of a mutual fund scheme at an NAV of Rs 30. The current NAV of the scheme is Rs 28. What will be the trail commission for today if the trail commission rate is 1% per annum?

Practice question from Nism VA Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Rs. 13.8356

  2. B

    Rs. 7.2256

  3. Rs. 3.8356

    Correct answer

  4. D

    Rs. 26.7463

Why this is the answer

Trail commission is calculated based on the current NAV. The total value of Ms. Shweta’s investment is Rs. 28 * 5000 = Rs. 1,40,000. The trail commission is calculated as: \[ \text{Trail Commission} = \frac{1\% \times 1,40,000}{365} = Rs. 3.8356 \]

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