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

Identify the false statement/s with respect to a New Fund Offer (NFO): (1)) A closed-ended mutual fund NFO will have an NFO opening date, an NFO closing date, and a scheme re-opening date. (2) An open-ended mutual fund NFO will have an NFO opening date, an NFO closing date, and a scheme re-opening date.

Practice question from Nism VA Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Only 1 is false

    Correct answer

  2. B

    Only 2 is false

  3. C

    Both 1 and 2 are false

  4. D

    None of the above

Why this is the answer

Closed-ended funds do not reopen for further subscriptions after the NFO closes. Instead, their units are listed and traded on the stock exchange.

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Nism VA Mock Test 1