alleryStart learning →An investor invested Rs. 10,000 in a mutual fund scheme when the NAV was Rs. 20. How many units were allotted, ignoring loads and taxes?
A200 units
B2,000 units
C1,000 units
D500 units
Answer & Solution
Correct answer: D. 500 units
1. Units allotted equal the amount invested divided by the applicable NAV per unit.
2. Given: amount = Rs. 10,000 and NAV = Rs. 20.
3. Units = 10,000 / 20 = 500 units.
4. Face value does not affect the calculation; NAV is the applicable price on the day.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 3 "Legal Structure of Mutual Funds in India", §3 unit concept_
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