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

The Asset Management Company primarily compensates the mutual fund distributors through ________.

Practice question from Nism VA Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Commissions

    Correct answer

  2. B

    Salaries

  3. C

    Salary + Commission

  4. D

    Share in AMC's profit

Why this is the answer

Mutual fund distributors are primarily compensated through commissions. These can be upfront commissions or trail commissions based on assets under management (AUM).

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