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

Identify the true statement(s) (A) A systematic transaction cannot be cancelled (B) Assuming a mutual fund scheme is profitable, then the investors can keep encashing some profits through a Systematic Withdrawal Plan

Practice question from Nism VA Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Only A is true

  2. Only B is true

    Correct answer

  3. C

    Both A and B are true

Why this is the answer

A systematic transaction (like SIP) can be cancelled, but Systematic Withdrawal Plans (SWP) allow investors to encash profits if the mutual fund scheme is profitable.

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