Units clarification as on year end.

AFM

Sir, How are you saying from the question that at the year end there are 10Lakhs units. Video Details ------------- Advanced Financial Management - AFM Mutual Funds - AFM #60. Illustration - 25

K Vamshi

CA Final

★ 14K+

12-Jul-25 10:42

232

Answers (3)

9 + 1 = 10 Mutual fund initially had 9 lacs units when it sells units it means people are investing So it get inflows so 1 lac units are new investments into scheme So opening units 9 lacs + 1 lacs fresh units issued / sold = 10 lacs Buy back or redemption from a MF perspective is a reduction in units Think of equity shares a company that has 9 lac opening eq share it its balance sheet , it issued fresh 1 lacs so total at year end is 10 lacs in MF for a company issuance = sale

Sriram Somayajula

Admin

12-Jul-25 13:02

Yes sir. I got it. So, sale of units from a mutual fund perspective is an issue. Okay sir. Thank you.

Thread Starter

K Vamshi

CA Final

★ 14K+

12-Jul-25 14:24

Yes

Sriram Somayajula

Admin

12-Jul-25 14:25