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

Identify the FALSE statement(s): (A) For Index funds, the NAV is calculated up to 4 decimal points (B) The AMC and a mutual fund scheme of the AMC can have the same auditor

Practice question from Nism VA Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Only A is false

  2. Only B is false

    Correct answer

  3. C

    Both A and B are false

Why this is the answer

Index funds must calculate NAV up to 4 decimal places, while mutual fund schemes and the AMC must have different auditors to maintain independence. Having the same auditor for both could lead to conflicts of interest.

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