Question

31. A mutual fund charges 1% entry load and no exit load. Its NAV is Rs. 16; its sale and repurchase price will
:
(A) Rs. 16 and Rs.15.80
(B) Rs.16.16 and Rs.15.84
(C) Rs.15.84 and Rs.16
(D) Rs.16.16 and Rs.16​

Answer 1

The total sale and purchase price will be Rs.16.16 and Rs.16

The correct option is (d)

Explanation:

Solution:

We are given that:

Current NAV = Rs 16

Fund charges on entry load = 1 %

Now add 1% entry load 0.16 = 00.16

Now the total amount will become

Total amount = Current charge + find charges

Total amount = 16.00 + 00.16

                    = 16.16 Rs

Hence, the total sale and purchase price will be Rs.16.16 and Rs.16​