Mutual_Fund_Terminology

Mutual_Fund_Terminology

Net Asset Value (NAV): Net Asset Value is the market value of the assets of the scheme, less liabilities. The per unit NAVis the net asset value of the scheme divided by the number of units outstanding on the date of valuation.

Sale Price: The sale price, or the ‘offer price’ is the price you pay when you invest in a scheme.

Repurchase Price: The price at which units under open-ended schemes are rep urchased by the the mutual fund. Repurchase price is always NAV related

Redemption Price: The price at which close-ended schemes redeem their units on maturity. The redemption price is also NA V-related.

Sales Load: Also called jo nt-end’ load or ‘entry’ load, it is a charge collected by the mutual fund scheme when it sells units. SEBI has abolished entry load for MF schewmes recently.

Repurchase Load: Also called ‘back- end’ load or ‘exit’ load, it is a charge collected by a mutual fund scheme when it buys back the units ftom the unitholders.