n NISM Certifications
X NISM Series X
Medium

Systematic Withdrawal Plans (SWP) in mutual funds facilitate regular withdrawals from either profits or capital, offering a flexible way to generate income while maintaining the investment.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The profits made on the investments

  2. B

    The capital part of the investment

  3. Either the profits made or capital part or both

    Correct answer

  4. D

    All of the above

Why this is the answer

SWP allows investors to withdraw income from profits, capital, or a combination, providing flexible cash flow options.

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