Ch.7 · NAV Calculation Rules · easy
An investor buys ₹25,000 worth of units at NAV ₹12.50. How many units are allotted?
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EXPLANATION
Units allotted = Investment Amount / Applicable NAV = ₹25,000 / ₹12.50 = 2,000 units. No entry load applies (banned since 2009), so the full ₹25,000 is invested at NAV ₹12.50. If a transaction charge applied (₹150 for new investor), net investment would be ₹24,850 giving 24,850/12.50 = 1,988 units.
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