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

In which of these options can an investor expect a cash flow in his bank account?

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

Options

  1. A

    Bonus

  2. Dividend Payout

    Correct answer

  3. C

    Dividend Reinvestment

  4. D

    Growth

Why this is the answer

If an investor chooses the Dividend Payout option, the dividend is paid directly into their bank account. In the Growth option, no dividend is paid out, and in Dividend Reinvestment, the dividend is reinvested into the fund by buying more units.

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