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

The distributable reserve of Income Distribution cum Capital Withdrawal of a mutual fund scheme is calculated as _________ .

Practice question from NISM Series V A - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    All the profits earned (excluding the Marked to Market profits) Less the accrued expenses Less the Mark to Market losses

  2. All the profits earned (including the Marked to Market profits) Less the accrued expenses Less the Mark to Market losses

    Correct answer

  3. C

    Only the dividend received

  4. D

    Only the Capital Gains

Why this is the answer

Distributable reserves are calculated by considering all the profits earned, including Marked to Market profits, and deducting accrued expenses and Mark to Market losses. This ensures that the amount available for distribution is accurate.

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