1.3.4 Compute Allotted Units

This topic provides the instructions to compute the allotted units.

After the final rounded-off load amounts have been arrived at, the allocation process computes the units to be allocated for the transaction.

It also calculates the final settlement amount for the transaction. This is total amount collected from the investor for in transactions such as IPO, subscription or switch-in, and is the total amount payable to the investor for out transactions, such as redemption and switch-out.

Unit’s computation

The process of calculation of the units to be allocated can be understood as shown below.

The computations for subscription and redemption transactions are shown. Switch transactions are treated as redeeming out of one fund and subscribing the redeemed amount into an other, so the processes of calculation are performed in two legs, the first, as a redemption, and the second, as a subscription.

Table 1-17 Acronyms and Abbreviations

Abbreviation	Description
GT	Gross Transaction Amount
NT	Net Transaction Amount
UA	Units Applied / Units Allotted
SP	Subscription Base Price
RP	Redemption Base Price
TL	Total Load Amount
NX	Load Factor expressed in percentage and the load being an allocation time load not loaded to price, rounded off as defined in the Currency Maintenance.
LX	Load Factor expressed in percentage and the load being an allocation time load loaded to price, rounded off as defined in the Fund Load Setup for the fund
NLA	Flat amount not loaded to price (amount LTP loads), rounded off as defined in the Currency Maintenance.
LLA	Flat value loaded to price (amount NLTP loads), rounded off as defined in the Fund Load Setup for the fund
UP	Unit price
UC	Unit Cost

ΣNLA = ΣPlus - ΣMinus

ΣLLA = ΣPlus - ΣMinus

Unit’s computation

Table 1-18 Subscription by AMOUNT (Gross)

Description	Load with LTP = Y	Load with LTP = N	Both loads
Transaction accepted with Gross Amount	Price affected by the load factor	Final transaction amount to be allocated is affected	-

Table 1-19 Subscription by AMOUNT (Gross) - Computation logic

Description	Load with LTP = Y	Load with LTP = N	Both loads
Gross amount	GT = Amount applied by the Investor	GT = Amount applied by the Investor	GT = Amount applied by the Investor
Not loaded to price loads	NLTP = 0	NLTP = Σ (GT * NX ) + Σ NLA	NLTP = Σ (GT * NX ) + Σ NLA
Loaded to price loads factor	LTP = Σ (SP * LX ) + ΣLLA	LTP = 0	LTP = Σ (SP * LX ) + ΣLLA
Unit price	UP = SP + LTP	UP = SP + LTP	UP = SP + LTP
Units allotted	UA = (GT - NLTP) / UP	UA = (GT - NLTP ) / UP	UA = (GT - NLTP) / UP
Total Loads	TL = NLTP + (LTP * UA)	TL = NLTP + (LTP * UA)	TL = NLTP + (LTP * UA)
Net Amount	NT = GT – TL	NT = GT – TL	NT = GT – TL
Unit cost	UC = GT / UA	UC = GT / UA	UC = GT / UA
Amount collected from Investor	Amount applied by the Investor and thus no additional amount needs to be collected	Amount applied by the Investor and thus no additional amount needs to be collected	Amount applied by the Investor and thus no additional amount needs to be collected

Table 1-20 Subscription by AMOUNT (Net)

Description	Load with LTP = Y	Load with LTP = N	Both loads
Transaction accepted with Net Amount	Price not affected by load factor. Load amount calculated and to be collected from the investor separately.	Transaction amount not affected by load factor. Load amount calculated and to be collected from the investors separately.	-

Table 1-21 Subscription by AMOUNT (Net) - Computation logic

Description	Load with LTP = Y	Load with LTP = N	Both loads
Net Amount	NT = Amount applied by the Investor	NT = Amount applied by the Investor	NT = Amount applied by the Investor
Not loaded to price loads	NLTP = 0	NLTP = Σ (NT * NX) + ΣNLA	NLTP = Σ (NT * NX) + ΣNLA
Loaded to price loads factor	LTP = Σ (SP * LX) + ΣLLA	LTP = 0	LTP = Σ (SP * LX) + ΣLLA
Unit price	UP = SP + LTP	UP = SP + LTP	UP = SP + LTP
Units allotted	UA = NT / SP	UA = NT / SP	UA = NT / SP
Total Loads	TL = NLTP + (LTP * UA)	TL = NLTP + (LTP * UA)	TL = NLTP + (LTP * UA)
Gross amount	GT = NT + TL	GT = NT + TL	GT = NT + TL
Unit Cost	UC = GT / UA	UC = GT / UA	UC = GT / UA
Amount collected from Investor	Total load amount to be collected over and above the amount applied by the Investor	Total load amount to be collected over and above the amount applied by the Investor	Total load amount to be collected over and above the amount applied by the Investor

Table 1-22 Subscription by UNITS

Description	Load with LTP = Y	Load with LTP = N	Both loads
Transaction accepted with units but load is on gross transaction amount	Price not affected by load factor. Load amount should be collected separately from the investor over and above the transaction amount.	Transaction amount not affected by load factor. Load amount should be collected separately from the investor over and above the transaction amount.	-

Table 1-23 Subscription by UNITS - Computation logic

Description	Load with LTP = Y	Load with LTP = N	Both loads
Units allotted	UA = Units applied by the Investor	UA = Units applied by the Investor	UA = Units applied by the Investor
Net Amount	NT = UA * SP	NT = UA * SP	NT = UA * SP
Not loaded to price loads	NLTP = 0	NLTP = Σ (NT * NX) + ΣNLA	NLTP = Σ (NT * NX) + ΣNLA
Loaded to price loads factor	LTP = Σ (SP * LX) + ΣLLA	LTP = 0	LTP = Σ (SP * LX) + ΣLLA
Unit price	UP = SP + LTP	UP = SP + LTP	UP = SP + LTP
Total Loads	TL = NLTP + (LTP * UA)	TL = NLTP + (LTP * UA)	TL = NLTP + (LTP * UA)
Gross amount	GT = NT + TL	GT = NT + TL	GT = NT + TL
Unit Cost	UC = GT / UA	UC = GT / UA	UC = GT / UA
Amount collected from Investor	The Gross transaction amount to be collected from the Investor	The gross transaction amount to be collected from the Investor	The Gross transaction amount to be collected from the Investor

Table 1-24 Redemption by AMOUNT (Gross)

Description	Load with LTP = Y	Load with LTP = N	Both loads
Transaction accepted with Gross Amount	Price not affected by the load factor. Load amount to be deducted from the Redemption amount prior to payment for Redemption	The final transaction amount not affected by load factor. Load amount to be deducted from the redemption amount prior to payment for redemption	-

Table 1-25 Redemption by AMOUNT (Gross) - Computation logic

Description	Load with LTP = Y	Load with LTP = N	Both loads
Gross amount	GT = Amount requested by the Investor	GT = Amount requested by the Investor	GT = Amount requested by the Investor
Not loaded to price loads	NLTP = 0	NLTP = Σ (GT * NX ) + Σ NLA	NLTP = Σ (GT * NX) + Σ NLA
Loaded to price loads factor	LTP = Σ (RP * LX) + ΣLLA	LTP = 0	LTP = Σ (RP * LX) + ΣLLA
Unit price	UP = RP + LTP	UP = RP + LTP	UP = RP + LTP
Units allotted	UA = GT / RP	UA = GT / RP	UA = GT / RP
Total Loads	TL = NLTP + (LTP * UA)	TL = NLTP + (LTP * UA)	TL = NLTP + (LTP * UA)
Net Amount	NT = GT – TL	NT = GT – TL	NT = GT – TL
Unit Cost	UC = NT / UA	UC = NT / UA	UC = NT / UA
Amount payable to Investor	Net Amount	Net Amount	Net Amount

Table 1-26 Redemption by AMOUNT (Net)

Description	Load with LTP = Y	Load with LTP = N	Both loads
Transaction with Net Amount	Price affected by load factor. Allocation as existing in FCIS now.	Transaction Amount affected by load factor. Allocation as existing in FCIS now.	-

Table 1-27 Redemption by AMOUNT (Net) - Computation logic

Description	Load with LTP = Y	Load with LTP = N	Both loads
Net Amount	NT = Amount requested by the Investor	NT = Amount requested by the Investor	NT = Amount requested by the Investor
Not loaded to price loads	NLTP = 0	NLTP = Σ (NT * NX ) + Σ NLA	NLTP = Σ (NT * NX) + Σ NLA
Loaded to price loads factor	LTP = Σ (RP * LX) + ΣLLA	LTP = 0	LTP = Σ (RP * LX) + ΣLLA
Unit price	UP = RP + LTP	UP = RP + LTP	UP = RP + LTP
Units allotted	UA = (NT + NLTP) / UP	UA = (NT + NLTP) / UP	UA = (NT + NLTP) / UP
Total Loads	TL = NLTP + (LTP * UA)	TL = NLTP + (LTP * UA)	TL = NLTP + (LTP * UA)
Gross amount	GT = NT + TL	GT = NT + TL	GT = NT + TL
Unit Cost	UC = NT / UA	UC = NT / UA	UC = NT / UA
Amount payable to Investor	Net Amount	Net Amount	Net Amount

Table 1-28 Redemption by UNITS (Gross)

Description	Load with LTP = Y	Load with LTP = N	Both loads
Transaction accepted with Gross Amount	Price not affected by the load factor. Load amount to be deducted from the Redemption amount prior to payment for Redemption	The final transaction amount not affected by load factor. Load amount to be deducted from the redemption amount prior to payment	-

Table 1-29 Redemption by UNITS (Gross) - Computation logic

Description	Load with LTP = Y	Load with LTP = N	Both loads
Units allotted	UA = Units applied by the Investor	UA = Units applied by the Investor	UA = Units applied by the Investor
Gross amount	GT = UA * RP	GT = UA * RP	-
Not loaded to price loads	NLTP = 0	NLTP = Σ (GT * NX ) + Σ NLA	NLTP = Σ (GT * NX) + Σ NLA
Loaded to price loads factor	LTP = Σ (RP * LX) + ΣLLA	LTP = 0	LTP = Σ (RP * LX) + ΣLLA
Unit price	UP = RP + LTP	UP = RP + LTP	UP = RP + LTP
Total Loads	TL = NLTP + LTP	TL = NLTP + LTP	TL = NLTP + LTP
Net Amount	NT = GT – TL	NT = GT – TL	NT = GT – TL
Amount payable to Investor	Net Amount	Net Amount	Net Amount

Price Basis Loads

Note:

Any loads that have been defined as price basis loads are only used as the indicator for computing load values, and are not picked up during evaluation of criteria. That is, the other load details specified for such loads, such as the return value, slabs and so on, are not taken into consideration. The difference between the Transaction Base Price and the Price Basis defined for the transaction is considered as an inherent fee or incentive, during allocation.

For instance, if the Price Basis for a transaction is Offer Price, and Transaction Base Price is 1.009 and the Offer Price is 1.060, the difference (1.06-1.009 = 0.051, without currency rounding) is considered as the inherent fee (since the TBP is less than the offer price).

If the offer price were less than the TBP, the difference between the two is considered an inherent incentive.