Ch.7 · NAV Calculation Rules · medium
An investor redeems 500 units at NAV ₹80 with a 1% exit load. What is the redemption amount?
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EXPLANATION
Redemption Price = NAV × (1 − Exit Load%) = ₹80 × (1 − 0.01) = ₹80 × 0.99 = ₹79.20 per unit. Total redemption amount = 500 units × ₹79.20 = ₹39,600. Alternatively: Gross amount = 500 × ₹80 = ₹40,000. Exit load = 1% of ₹40,000 = ₹400. Net proceeds = ₹40,000 − ₹400 = ₹39,600.
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