At what price are bonus units issued to the unitholder?
A
The price is decided by the AMC in consultation with the trustees.
B
The bonus units are allotted free of cost.
C
At the prevailing NAV.
D
At the prevailing NAV divided by the bonus ratio.
Correct Option:
B
Explanation
Bonus units are allotted to existing unitholders free of cost. The total value of the investor's holdings remains substantially unchanged because the NAV adjusts to reflect the issue of additional units.
