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

The main reason why SEBI has issued norms for investments by mutual fund schemes is to _________.

Practice question from Nism VA Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Get better returns by mutual fund schemes

  2. B

    Improve the credit ratings of the mutual fund schemes

  3. Protect the interests of the mutual fund investors

    Correct answer

  4. D

    Protect the interests of the mutual fund industry

Why this is the answer

SEBI (Securities and Exchange Board of India) has issued regulations to ensure investor protection in the mutual fund industry. The primary aim of these norms is to safeguard the interests of mutual fund investors by ensuring transparency, fairness, and proper governance in the management of funds.

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