Ch.7 · Total Expense Ratio Limits · medium
What is the process for calculating units allotted to an investor in a lump sum purchase?
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EXPLANATION
Units allotted = (Investment Amount − Transaction Charges, if any) / Applicable NAV. For example: Investment ₹50,000, transaction charge ₹150 (new investor via distributor), applicable NAV ₹25. Net investment = ₹49,850. Units = 49,850 / 25 = 1,994 units. For Direct Plans with no transaction charge: Units = Investment Amount / NAV.
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