Methodology of Calculating Sale Price and Repurchase Price for Mutual Fund Units
The Methodology of calculating the Sale price for mutual fund units (Purchase price for investors) is given below:
Sale price is the price at which investor can invest in units of mutual fund schemes. The entry load has been abolished with effect from August 01, 2009 vide SEBI Circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated August 01, 2009. Hence, Sale price is equal to the applicable NAV.
The Methodology of calculating the Repurchase price (Redemption price) of units is given below:
Repurchase price is the price at which investor can redeem units of mutual fund schemes. While calculating repurchase price the exit load, as applicable, is deducted from the applicable NAV.
For example, If the applicable NAV is Rs. 10, exit load is 1% then repurchase price will be: Rs. 10* (1-0.01) = Rs. 9.90.