What does repurchase price mean in mutual funds?
In mutual funds, the repurchase price is the price at which a fund house buys back units from investors, most commonly applicable to closed-ended or interval schemes. This price represents the value investors receive per unit when they choose to redeem their holdings.
The repurchase price is generally based on the fund’s Net Asset Value (NAV). However, if the scheme imposes an exit load, the repurchase price will be slightly lower than the NAV to account for that deduction.
Key aspects of repurchase price
- Applies primarily to closed-ended and interval schemes
- Determined by the scheme's NAV on the repurchase date
- May be reduced by applicable exit load or fees
- Distinct from purchase price, especially in schemes with load structures
What if...
| Scenario | Explanation |
|---|
| You redeem units during repurchase window | You'll receive the current NAV minus any exit load as the repurchase price. |
| Exit load is applicable | The repurchase price will be lower than the NAV based on the load charged. |
| You invest in open-ended schemes | Redemptions happen daily at NAV, so “repurchase price” is essentially the NAV. |
| You hold until scheme maturity | In closed-ended schemes, you’ll receive the final NAV as redemption value. |
Always check the fund’s latest NAV and exit load terms before submitting a repurchase request to know the effective price you'll receive.
Last updated: 16 Jun 2025
Related Articles
What does redemption price mean in mutual funds?
In mutual funds, the redemption price is the amount an investor receives when they sell or redeem units of an open-ended mutual fund scheme. It reflects the per-unit value an investor gets back and is closely tied to the scheme’s Net Asset Value ...
What are closed-ended funds/schemes in mutual funds?
Closed-ended mutual fund schemes are structured investment options that accept subscriptions only during a fixed period known as the New Fund Offer (NFO). These schemes have a predetermined maturity date—typically between 3 to 5 years—and do not ...
What does ‘Top Funds for Pledging’ mean in the Mutual Funds section of FYERS?
While navigating the Mutual Funds section on FYERS, you’ll come across a dedicated area called 'Top Funds for Pledging'. This section is designed to help you quickly identify mutual funds that are eligible for margin collateral when pledged. What is ...
What are gilt funds?
Gilt funds are debt mutual fund schemes that invest predominantly in government securities issued by the central and state governments. These funds carry minimal credit risk, as the securities are backed by the government, making them a safer option ...
What are Direct Mutual Funds on FYERS?
When investing in mutual funds through FYERS, you'll notice the term Direct Mutual Funds. These funds offer the same portfolio as regular plans but without distributor commissions, often resulting in better returns over the long term. What are Direct ...