n NISM Certifications
VII NISM Series VII
Medium

Portfolio Managers may invest in units of Mutual Funds only through direct plan.

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

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

SEBI (Portfolio Managers) Regulations, 2020 specify that portfolio managers can invest in mutual fund units only through the direct plan. This ensures cost efficiency and transparency for clients’ investments.

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