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

Mr. Prakash has made a one-time investment in a mutual fund scheme through a distributor. He has done no other subsequent transactions. How will the trail commission payable to the distributor be calculated?

Practice question from Nism VA Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The NAV as on the date of purchase X Number of units X Rate of trail commission X Number of days the investment is held / 365

  2. The NAV as on the date of calculation of trail commission X Number of units X Rate of trail commission X Number of days the investment is held / 365

    Correct answer

  3. C

    Average of all NAVs from the date of purchase to the date of calculation of trail commission X Number of units X Rate of trail commission X Number of days the investment is held / 365

  4. D

    Face value of unit X Number of units X Rate of trail commission X Number of days the investment is held / 365

Why this is the answer

Trial commission is calculated based on the NAV on the day of calculation, the number of units held, the rate of commission, and the time the investment is helD) It is paid out periodically based on the value of the fund.

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Nism VA Mock Test 3