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What is Purchase Price/ Sale Price?

 

Sale Price is the price payable per unit by an investor for purchase of units (subscription) and/or switch-in from other schemes of a mutual fund.

Hence, during the New Fund Offer (NFO), the Sale Price per unit is at Face Value per unit specified in the respective Scheme Information Document (SID) and Key Information Memorandum (KIM) and during the ‘Ongoing Offer’ period (i.e., the date from which the scheme re-opens for subscriptions/redemptions after the closure of the NFO period.), the units may be purchased at the Net Asset Value (NAV), i.e., the Sale Price per unit is equivalent to applicable NAV on the date of subscription.

Note: NAVs of all mutual fund schemes are published on AMFI’s website (https://www.amfiindia.com/net-asset-value) In addition, each Mutual Fund discloses the NAVs of its schemes on the respective MF website.

For example, Ongoing price for subscription (purchase)/switch-in (from other Schemes/plans of the mutual fund) by investors.

Purchase Price = Applicable NAV (for respective plan and option of the scheme)

Example: An investor invests Rs. 10,000/- and the current NAV is Rs. 10/- then the purchase price will be Rs. 10/- and the investor receives 10,000/10 = 1000 units.

OTHER ARTICLES

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Posted 28 Jul 2020

What is Switch in and Switch out?

Posted 28 Jul 2020

What is FATCA?

Posted 20 Jul 2020

What is Absolute Return?

Posted 20 Jul 2020

What is Repurchase/Redemption price?

Posted 28 Jul 2020

What is Net Asset Value (NAV) of a Scheme?

Posted 28 Jul 2020

 

 

 

Disclaimer:

The section Knowledge Centre on this website is a platform for WhiteOak Capital Mutual Fund to spread awareness and educate investors about various Mutual Fund products. It should not be construed as an offer to sell nor is a solicitation of an offer to buy units of any of the schemes of WhiteOak Capital Mutual Fund. Figures indicated here are for illustrative purpose only and does not correspond to any live or historical data. The information herein above is meant only for general reading purposes and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. Before making any investments, the readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor, the Investment Manager, the Trustee, their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.