1. 2 4. Sales Price, Purchase Price, Redemption Price and Load Charges a)Sales Price / Offer Price / Ask Price / POP : Amount Required by a fund for selling.

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2 4. Sales Price, Purchase Price, Redemption Price and Load Charges a)Sales Price / Offer Price / Ask Price / POP : Amount Required by a fund for selling a unit of a scheme or Amount Payable by an investor to buy a unit of a Scheme. Front-end Load or Entry Load No Load Current SEBI Guidelines Offer Price or Sales Price =NAV As per Old SEBI Guidelines Offer Price = NAV [1+ % Load Charge] International Practice Offer Price = NAV /[1- % Load Charge]

3 b) Redemption Price It is applied for open end fund on any day and for close end fund at expiry date. Typically exit load is not applicable and Redemption Price = NAV However, a scheme may apply exit load in case of open end fund also. Redemption Price = NAV [ 1 – Exit Load ] Repurchase Price It Is applied for close end fund on any day except last day Exit Load or Back end Load is applicable. Repurchase Price = NAV [ 1- exit load % ]

4 b) CDSC or CDSL: Contingent Deferred Sales Charge / Load is a type of exit load which reduces over the life of fund. This means this provides an incentive to an investor (by way of a lower load) for staying longer with the fund. Repurchase Price = NAV [ 1 - % CDSL ] Concept Point : Load fee has no role in Nav calculation. In practice all load collected are maintained in a separate account to meet sales related expenses.

5 Portfolio Turnover Definition: How much trading a fund manager does over a specified period. [ In simple word, how many times assets (or corpus) have been replaced during specified period ] How To Measure : Lower of asset bought or sold is devided by average asset (or corpus)during specified period.

6 Interpretation : A portfolio turnover of ‘1’ or (100 %) means entire assets have been replaced once during specified period. Therefore a high portfolio turnover indicates high ‘churn out’ (replacement) of asset. It is difficult to accurately calculate Portfolio Turnover in case of open end fund (as compared ti close end fund) While interpreting portfolio turnover we should also take into account the Nature of fund (or fund objective) like liquid fund (where investment is in money market instruments) will have high Portfolio Turnover. In case of Close end Fund Investor Return is calculated based on price. In case of Close end Fund Manager Return is calculated based on NAV.