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

As per the Advertisement Guidelines for Mutual Funds, Point-to-point returns on a standard investment of Rs. 10,000 shall also be shown in addition to the CAGR for a scheme which has been in existence _______ .

Practice question from Nism VA Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    More than 5 years

  2. More than 3 years

    Correct answer

  3. C

    More than 2 years

  4. D

    Irrespective of years of existence, all mutual fund schemes must show the point to point returns

Why this is the answer

As per SEBI guidelines, for schemes that have been in existence for over 3 years, point-to-point returns (on an investment of Rs. 10,000) must be shown in addition to CAGR (Compound Annual Growth Rate).

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