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

The additional Total Expense Ratio (TER) charged has to be credited back to the Mutual Fund if the inflows from beyond the top 30 cities are redeemed within a period of 1 year from the date of investment. State whether True or False?

Practice question from NISM Series V A - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

Mutual funds can charge an additional TER for inflows from beyond the top 30 cities. If the investment from these cities is redeemed within 1 year, the additional TER charged must be credited back to the scheme.

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