Disclosure of Net Asset Value (NAV) and sale / repurchase prices
Unitholders may note that the applicable NAV based on the time of the Business Day
on which the application is time stamped will be used for purchase or redemption
or Switching of Units.
The price or NAV a unitholder is charged while investing in an open-ended scheme
is called subscription / sale price. Pursuant to SEBI circular no. SEBI/IMD/CIR
No.4/ 168230/09 dated June 30, 2009, no entry load will be charged by the Scheme
to the unitholders. Therefore, “Applicable NAV” of the Business Day on which the
application is time stamped will be used for allotting units.
Repurchase or redemption price is the price or NAV at which an open-ended scheme
purchases or redeems its units from the unitholders. It may include exit load, if
applicable. The exit load shall be charged as a percentage of Net Assets Value (NAV)
i.e. applicable load as a percentage of NAV will be deducted from the “Applicable
NAV” to calculate repurchase price.
To further elaborate,
a) Sale / Subscription Price = Applicable NAV.
b) Repurchase / Redemption Price = Applicable NAV *(1 – Exit Load, if any).
For example, if the Applicable NAV of the Scheme is Rs. 10 and the Exit Load applicable
at the time of investment is 2% if redeemed before completion of 1 year from the
date of allotment of units and the Unitholder redeems units before completion of
1 year, then the repurchase/redemption price will be:
= Rs. 10*(1-0.02)
= Rs. 9.80
The AMC/Trustee reserves the right to change / modify the Load structure of the
Scheme, subject to maximum limits as prescribed under the Regulations. However,
the Redemption Price will not be lower than 93% of the NAV or as permitted / prescribed
under the SEBI Regulations from time to time. Similarly, the difference between
the Subscription Price and the Redemption Price shall not exceed the permitted limit
as prescribed by SEBI from time to time which is presently 7% calculated on the
Subscription Price.