Question

Rs. 60,000 are invested in a mutual fund with NAV of Rs. 15.3712 and an entry load of 2.25%. The number of units purchased are _____. *​

Answer 1

Answer:

Different mutual funds houses charge different fees as an entry load. In India, this charge was usually of about 2.25% of the value of investment. From August 2009 ...

Answer 2

Rs. 60,000 are invested in a mutual fund with NAV of Rs. 15.3712 and an entry load of 2.25%. The number of units purchased are 3817.5224 .

Explanation:

The entry load is 2.25%.

Entry load per unit   $=15.3712 \times \frac{2.25}{100} = 0.3458$

The actual price is paid per unit  including entry load $= 15.3712 + 0.3458 = 15.717$

 Number of units purchased =   amount invested/price per unit

                                                    $=\frac{60000}{15.717}$

                                                   $=3817.5224$

Thus,Number of units purchased are $3817.5224$.