Ch.7 · NAV Calculation Rules · medium
What is 'unit-based redemption' vs 'amount-based redemption'?
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EXPLANATION
Investors can redeem in two ways: (1) Unit-based: 'Redeem 500 units' — proceeds = 500 × (NAV − Exit Load%); (2) Amount-based: 'Redeem ₹20,000' — units redeemed = ₹20,000 / (NAV − Exit Load%). Both achieve the same result. Amount-based is useful when you need a specific cash amount; unit-based when you want to exit a specific portion of your holding.
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