n NISM Certifications
X NISM Series X
Medium

What additional expense is typically higher in regular mutual fund plans compared to direct plans?

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. A

    Operational Expenses

  2. Distribution Expenses

    Correct answer

  3. C

    Portfolio Management Expenses

  4. D

    All of the above

Why this is the answer

Regular plans include distributor commissions, thus incurring higher distribution expenses compared to direct plans.

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