n NISM Certifications
V-A NISM Series V-A
Medium

A Trail Commission is paid _______.

Practice question from NISM Series V A - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. As long as the investor stays invested in the mutual fund scheme

    Correct answer

  2. B

    When the investor invests into the mutual fund scheme

  3. C

    When the investor exits the mutual fund scheme

  4. D

    Trail Commission means no commission

Why this is the answer

A trail commission is a percentage of the net assets attributable to the units sold by the distributor. This commission is paid to the distributor as long as the investor’s money remains invested in the scheme.

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