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IFIC Mutual Funds Licensing Practice Exam · Question

An investor holds 1,000 units of an open-end mutual fund with a Net Asset Value (NAV) of $15.00 per unit. If they decide to redeem all their units, how much cash will they receive (ignoring any redemption fees or deferred sales charges)?

The proceeds from redeeming open-end mutual fund units are calculated by multiplying the number of units by the fund's NAV per unit ($15.00 * 1,000 units = CAD

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Question: An investor holds 1,000 units of an open-end mutual fund with a Net Asset Value (NAV) of $15.00 per unit. If they decide to redeem all their units, how much cash will they receive (ignoring any redemption fees or deferred sales charges)?

Answer options: ✅ CAD 15,000

  • CAD 14,850
  • CAD 15,300
  • CAD 1,500

Correct answer: CAD 15,000

Explanation: The proceeds from redeeming open-end mutual fund units are calculated by multiplying the number of units by the fund's NAV per unit ($15.00 * 1,000 units = CAD 15,000).

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