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

______ is responsible for ensuring the valuation of the securities in a mutual fund scheme’s portfolio are true and fair.

Practice question from NISM Series V A - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Association of Mutual Funds in India (AMFI)

  2. B

    Registrar and Transfer Agent

  3. C

    The auditor of the fund

  4. Asset Management Company (AMC)

    Correct answer

Why this is the answer

The responsibility for ensuring the true and fair valuation of a mutual fund's securities lies with the Asset Management Company (AMC). If the established valuation policies do not lead to fair value, the AMC must make necessary adjustments in the valuation.

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