1.3.2 Compute Basis for Applying Loads

This topic provides the instructions to compute the basis values.

After obtaining the loads that must be applied, the process then computes the basis upon which the load return value may be arrived at. The basis could be an amount, number of units or a number of days. The actual return value of the loads, as applicable, will be computed on this basis value.

In arriving at the basis values, the process makes the following validations:

Table 1-12 Conditions and Validations

Conditions	Validations
Letter of Intent transactions	If the transaction is designated as a Letter of Intent transaction for the investor, the basis computation is as follows: Basis Amount = LOI Amount Basis Units = Basis Amount / Transaction Base Price for the transaction type on transaction date. This validation is made only for IPO, subscription and switch-in transactions where the nature of the investment is in transactions.
Rights of Accumulation load	If the load is cumulative, and the investor is an ROA (Rights of Accumulation) investor, the basis amount is computed according to the option chosen by the AMC for interpretation of the history of investment of the ROA investor. The total holdings of the investor in the fund or load group are considered to arrive at the basis amount. If the ROA load is designated as applied at a CIF level, then the total holdings of all investors of the CIF, in the fund or load group are considered. Basis Units = Basis Amount / Transaction Base Price for the transaction type on transaction date.
Basis Definition Loads	If the load is a basis load as defined in the Basis Definition screen, then the basis values (i.e., the basis units or basis days) are taken from the definition made in that screen for the load. In such a case, Basis Amount = Basis Units * Transaction Base Price for the transaction type on the transaction date.
Ageing Loads	If the load is period-based (i.e., ageing) load, Basis Amount = Transaction Amount Basis Units = Basis Amount / Transaction Base Price for the transaction type on transaction date. This validation is made only for redemption and switch-out transactions, which are out transactions.
Gross-based transactions for which the load slab definition is on a net basis	For gross transactions, where the load slabs applicable are defined on a net basis, the process recalculates the basis amount to reflect the same.
Normal loads	If all the above conditions are not present, then the load is a normal load, and the basis is computed as follows: Basis Amount = Transaction Amount Basis Units = Basis Amount / Transaction Base Price for the transaction type on transaction date.

The process then proceeds to identify the loading slab and compute the actual applicable return value after the Basis Amount and Basis Units are known.