Given a mutual fund with 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:

( \text{Sales Charge Percentage} = \frac{\text{Offering Price} - \text{NAV}}{\text{Offering Price}} \times 100 )

In this case, the NAV (Net Asset Value) is $11.72, and the offering price is $12.67.

First, calculate the sales charge:

( \text{Sales Charge} = \text{Offering Price} - \text{NAV} = 12.67 - 11.72 = 0.95 )

Next, plug this value into the formula to find the sales charge percentage:

( \text{Sales Charge Percentage} = \frac{0.95}{12.67} \times 100 \approx 7.5% )

This calculation shows that the sales charge percentage is approximately 7.5%. This means that investors will pay an additional 7.5% on top of the NAV when purchasing shares of the mutual fund. The percentage reflects the costs associated with selling shares of the mutual fund, which can include fees for managing and promoting the fund.