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Formula sheet/NISM Series V-A: Mutual Fund Distributors/Concept & Role of a Mutual Fund
[ CONCEPT & ROLE OF A MUTUAL FUND ]

Unit Capital, Units Allotted & Assets Under Management (AUM)

Unit Capital=Number of Outstanding Units×Face Value(typically Rs10)\text{Unit Capital} = \text{Number of Outstanding Units} \times \text{Face Value} (\text{typically Rs} 10)
Units Allotted=Investment AmountApplicable NAV\text{Units Allotted} = \dfrac{\text{Investment Amount}}{\text{Applicable NAV}}
Assets Under Management(AUM)=Total Outstanding Units×Current Market NAV\text{Assets Under Management} (AUM) = \text{Total Outstanding Units} \times \text{Current Market NAV}
Variables

Face Value: Accounting base; NAV: Realizable net worth per unit.

Exam note

AUM expands with fresh subscriptions and mark-to-market valuation gains; contracts with redemptions and IDCW distributions.