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

From which of these can the mutual fund NOT distribute dividends?

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

Options

  1. A

    Income accruals

  2. B

    Dividends which are received from equity investments

  3. C

    Realized gain from sale of investments

  4. Unrealized appreciation in value of investments

    Correct answer

Why this is the answer

According to SEBI guidelines, mutual funds can only distribute dividends from realized profits (e.g., income accruals or realized gains). Unrealized appreciation cannot be used to pay dividends.

Test yourself for real

Take a full NISM Series V-A mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.