n NISM Certifications
NSM General NISM
Medium

In Systematic Withdrawal Plan (SWP), the investor:

Practice question from C4 - Test Your Knowledge — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Invests a fixed amount regularly into a mutual fund

  2. B

    Buys units of an index fund regularly

  3. C

    Redeems the entire investment at once

  4. Withdraws a fixed amount periodically from mutual fund investments

    Correct answer

Why this is the answer

SWP enables investors to withdraw a fixed amount at regular intervals, useful for supplementing income or retirement planning.

Test yourself for real

Take a full General NISM mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.