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

How can the fundamental attributes of a mutual fund scheme be changed?

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

Options

  1. A

    The fundamental attributes cannot be changed

  2. The fundamental attributes can be changed but this should be communicated to all the unit holders who should be provided an option to exit the scheme

    Correct answer

  3. C

    The fundamental attributes can be changed with the permission of SEBI and AMFI

  4. D

    The fundamental attributes can be changed but only with the consent of 100 percent of unit holders

Why this is the answer

Changes to a mutual fund’s fundamental attributes must be communicated to all unitholders. They should also be given an option to exit the scheme at the prevailing NAV without paying an exit load.

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