n NISM Certifications
X NISM Series X
Medium

How can open-ended mutual funds be redeemed?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Via secondary market transactions, subject to limits

  2. B

    Through redemptions with AMC, subject to limits

  3. C

    Anytime redemption directly with AMC

  4. Anytime with AMC, possibly with exit loads

    Correct answer

Why this is the answer

Open-ended funds permit redemptions at any time directly through the AMC, with possible exit loads depending on the terms.

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