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

To whom do the profits or losses made by the mutual fund belong?

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

Options

  1. The investors

    Correct answer

  2. B

    The Asset Management Company

  3. C

    Fund Managers

  4. D

    Trustees

Why this is the answer

The profits or losses generated by a mutual fund scheme belong to the investors or unitholders. The Asset Management Company (AMC), fund managers, and trustees are paid fees for managing and operating the scheme but do not share in the scheme’s profits or losses.

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