If a mutual fund has a NAV of $11.72 and an offering price of $12.67, what is the sales charge percentage?

To determine the sales charge percentage for a mutual fund, you can use the following formula:

Sales Charge Percentage = [(Offering Price - NAV) / Offering Price] × 100

In this case, the net asset value (NAV) is $11.72, and the offering price is $12.67. Plugging these values into the formula gives:

Sales Charge Percentage = [(12.67 - 11.72) / 12.67] × 100

Calculating the difference yields:

12.67 - 11.72 = 0.95

Next, divide 0.95 by the offering price, $12.67:

0.95 / 12.67 ≈ 0.075

Now, multiplying by 100 gives:

0.075 × 100 = 7.5%

This result indicates that the sales charge percentage is 7.5%. This is the correct answer as it accurately represents the proportion of the offering price that constitutes the sales charge, based on the difference between the NAV and the offering price.

Therefore, the sales charge percentage correctly reflects the costs associated with purchasing the mutual fund shares, making this calculation essential for investors looking to understand their costs when investing in such financial