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

In which of the following cases is the transaction charge to be paid to the mutual fund distributor, deducted from the gross investment of the investor?

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

Options

  1. A

    When the investor purchases mutual fund units worth Rs 5000 through a mutual fund distributor

  2. When the investor purchases mutual fund units worth Rs 10000 through a mutual fund distributor

    Correct answer

  3. C

    When the investor purchases mutual fund units worth Rs 5000 through the website of the mutual fund

  4. D

    When the investor purchases mutual fund units worth Rs 10000 through the website of the mutual fund

Why this is the answer

A transaction charge is applicable when an investor buys mutual fund units worth Rs 10,000 or more through a distributor. Direct investments made through the website do not attract such charges.

Test yourself for real

Take a full NISM Series V-A mock test.

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

NISM Series V A - Mock Test 4 Free