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

_______ can be used in lieu of dividend payouts.

Practice question from NISM Series V A - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Systematic Withdrawal Plan (SWP)

    Correct answer

  2. B

    Systematic Transfer Plan (STP)

  3. C

    Systematic Investment Plan (SIP)

  4. D

    Total Redemption

Why this is the answer

The Systematic Withdrawal Plan (SWP) allows investors to withdraw a fixed amount at regular intervals, serving as an alternative to receiving dividends. It offers flexibility in the timing and amount of withdrawals.

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