Multiple choice

For a open-end fund, the sale price should not be

  1. higher than the NAV

  2. higher than 107% of NAV

  3. lower than 107% of repurchase price

  4. equal to NAV

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

SEBI regulations mandate that the sale price (offering price) of an open-end fund cannot exceed 107% of the NAV. This 7% cap prevents excessive loading on investor purchases.