3.13.5.1.1 On-Shore Average Cost (Transaction Cost Level)

This topic provides information on on-shore average cost (transaction cost level).

The system will calculate the average cost for on-shore fund based on Net/ Gross amount.

For showing the unit holder’s Unit Holding Statement, units will be mainly classified into two group as follows:

• Subscription – All Inflow transaction (including Reinvestment Transaction) excluding RSP and DRSP
• RSP – RSP and DRSP

Total cost of subscription is calculated as follows:

• Cost of all inflow transactions excluding Regular saving Plan (RSP/ DRSP).
• Current cost will be arrived by sum of net/ gross amount of inflow transactions minus all the linked out flow units * NAV (Unit Price of the allotted units).

Total cost of RSP is calculated as follows:

• Cost of all Regular saving plan RSP / DRSP.
• Current cost will be arrived by sum of net/Gross amount of RSP / DRSP transactions minus all the linked out flow units * NAV (Unit Price of the allotted units).

where,

NAV is linked inflow transactions unit price at the time of allocation.

Total number of subscription units is the current unit balance of all inflow transactions units excluding Regular Saving Plan (RSP).

Total number of RSP units is the current unit balance of all Regular Saving Plans.

The system will calculate the average cost per unit as follows:

((Total cost of subscription) + (Total cost of RSP))

((Total no. of subscription units) + (Total no. of RSP units))

In case of Transfer Gross/ Net Amount, the system will consider the cost of the transfer-in units based on the preference of the Transfer out Leg.

In case of transfer, you need to use Base Cost to enter NAV for the change of beneficiary.

• In this case cost of the Transfer In will be Transfer in Units multiplied by NAV, as entered in Base cost
• For any out flow transaction linking this transfer, cost will be arrived by linked units multiplied by the Base Cost.

For 100% transfer, you should capture 2 transactions one for each FEL and CDSC. For Fund Merger, the system will generate 2 Normal switch transactions one each for FEL and CDSC.

For Fund Merger cost of the switch-in fund units will be the units that got switched In multiplied by the NAV as of that date.