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

For how long is the trail commission paid to the mutual fund distributor?

Practice question from Nism VA Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    For the first one year only

  2. B

    For the first three years only

  3. C

    For the first ten years only

  4. Till the money is held in the fund

    Correct answer

Why this is the answer

The trail commission is paid to mutual fund distributors for as long as the investor's money remains invested in the fund. This commission is typically a percentage of the assets under management.

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