Methodology Of Calculating Sale & Repurchase Price

Pursuant to SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2018/92 dated June 05, 2018 on “Go Green Initiative in Mutual Funds”, the methodology of calculating the sale and repurchase price of units is explained with an illustration below:

A) Sale Price:

The Sale Price for a valid purchase will be the Applicable NAV i.e. Sale Price = Applicable NAV

For a valid purchase request of Rs.10,000 where the applicable NAV is Rs.11.123, the units allotted will be:

= 10,000 (i.e. purchase amount)
   11.1234 (i.e. applicable NAV)

= 899.006 units (rounded to three decimals)

B) Repurchase Price:

The Repurchase Price for a valid repurchase will be the applicable NAV reduced by any exit load (say 1%). i.e. applicable NAV - applicable NAV X applicable exit load

For a valid repurchase request where the applicable NAV is Rs.12.1234, the repurchase price will be :

= 12.1234 - 12.1234 X 1.00%

= 12.1234 - 0.121 2

= Rs.12.0022

Therefore, for a repurchase of 899.006 units the proceeds received by the investor will be -

= 899.006 (units) * 12.0022 (Repurchase price)

= Rs.10,790.02 (rounded to two decimals)

Note: Transaction charges and other charges/expenses, if any, borne by the investors have not been considered in the above illustration(s).