Knowledge Center

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.

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