n NISM Certifications
X NISM Series X
Medium

Once the NFO of a closed-ended mutual fund is over, at what price can units be bought?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Always lower than NAV

  2. B

    Always higher than NAV

  3. At traded prices, which may be below or above NAV

    Correct answer

  4. D

    Cannot be bought once NFO is over

Why this is the answer

Closed-end fund units are traded on exchanges, with prices determined by market forces, often at premiums or discounts to NAV.

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