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Options
- A
Its true for all categories of mutual fund schemes
-
Its false for all categories of mutual fund schemes
Correct answer
- C
Its true only for equity funds
- D
It depends on whether the fund is open-end or close-end
Why this is the answer
In both the Growth and Income Distribution cum Capital Withdrawal re-investment options, the NAV decreases by the amount of the dividend, and the reinvested amount is used to buy additional units. The growth is similar in both options as only the number of units changes, not the total investment.
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