Final answer:
The load of a mutual fund with a 2% load and a $15.00 NAVPU is 2% of the amount you invest, meaning for every $15.00 unit purchased, $0.30 is paid as a load.
Step-by-step explanation:
The load of a mutual fund is the fee charged to investors when they purchase (front-end load) or sell (back-end load) shares in a mutual fund. To calculate the load as a percentage of the invested amount, we can use the given figures: a 2% load and a $15.00 Net Asset Value Per Unit (NAVPU).
When you invest in a mutual fund with a 2% front-end load, 2% of your investment is used to pay the load. For example, if you invest $100, $2 goes towards the load, and the remaining $98 is invested in the fund. In this scenario, we can calculate the cost of the load as a percentage of the amount you want to invest (before the load is applied).
Here's how you can calculate it:
- Load percentage = (Load / NAVPU) × 100
- Load percentage = (2% of $15.00 NAVPU) × 100
- Load percentage = ($0.30 / $15.00) × 100
- Load percentage = 2%
This means that a mutual fund with a 2% load and a $15.00 NAVPU will have the load cost 2% of the amount you invest.