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

_______ can be used in lieu of Income distribution cum capital withdrawal pay-outs.

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

Options

  1. A

    Systematic Investment Plan

  2. B

    Systematic Transfer Plan

  3. Systematic Withdrawal Plan

    Correct answer

  4. D

    All of the above

Why this is the answer

A Systematic Withdrawal Plan (SWP) allows investors to withdraw fixed amounts regularly, which can serve as an alternative to income distribution cum capital withdrawal pay-outs. Unlike dividends, SWP payments are guaranteed regardless of fund performance.

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