n NISM Certifications
X NISM Series X
Medium

The lock-in period for retirement fund units is best described as which of the following?

Practice question from NISM Series XB- Investment Adviser (Level 1) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Locked-in for 5 years or till retirement, whichever is earlier

    Correct answer

  2. B

    Locked-in for a minimum of 5 years, maximum at investor’s discretion

  3. C

    Locked-in for at least 5 years or till scheme end, whichever is earlier

  4. D

    Locked-in for 5 years before retirement

Why this is the answer

Retirement schemes are mandated to have a minimum lock-in of five years or until the investor reaches retirement age.

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