Ch.2 · Advantages and Limitations of Mutual Funds · easy

What is the face value (par value) of a mutual fund unit at the time of NFO?

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EXPLANATION

The standard face value (par value) of a mutual fund unit at the time of NFO is ₹10. This is the initial offering price. However, the face value does not affect returns — what matters is the change in NAV from the purchase price to the redemption price.

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