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FAQs of Mutual Funds
Net Asset Value (NAV)
Net Asset Value is the market value of the assets of the scheme
minus its liabilities. The per unit NAV is the net asset value
of the scheme divided by the number of units outstanding on
the Valuation Date.
Sale
Price
Is the price you pay when you invest in a scheme. Also called
Offer Price. It may include a sales load.
Repurchase
Price
Is the price at which a close-ended scheme repurchases its
units and it may include a back-end load. This is also called
Bid Price.
Redemption
Price
Is the price at which open-ended schemes repurchase their
units and close-ended schemes redeem their units on maturity.
Such prices are NAV related.
Sales
Load
Is a charge collected by a scheme when it sells the units.
Also called, ‘Front-end’ load. Schemes that do
not charge a load are called ‘No Load’ schemes.
Repurchase
or 'Back-end' Load
Is a charge collected by a scheme when it buys back the units
from the unitholders.
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