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

In a mutual fund application form, if 'Direct' is mentioned in the space provided for ARN and the choice of regular plan is indicated, then the application will be considered as ______.

Practice question from NISM Series V A - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Direct plan application

  2. Regular plan application

    Correct answer

  3. C

    Incomplete and rejected

  4. D

    Incomplete and sent to the investor for completion

Why this is the answer

If 'Direct' is mentioned in the ARN space but the investor selects a regular plan, it will still be considered as a regular plan application. The 'Direct' option is only applicable for investments that do not involve a distributor.

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