Ch.7 · Total Expense Ratio Limits · medium
What is the 'purchase price' vs 'redemption price' spread for no-load mutual funds?
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EXPLANATION
For open-ended schemes with no entry load (all schemes since 2009) and no exit load, purchase price = NAV and redemption price = NAV. There is no bid-ask spread unlike ETFs or stocks. If an exit load applies, redemption price = NAV minus exit load %. For liquid and overnight funds after the exit load period (typically 7 days), both buy and sell prices equal NAV.
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