n NISM Certifications
NSM General NISM
Medium

What is a switch in mutual funds?

Practice question from C2 - Test Your Knowledge — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Changing your distributor while keeping the same fund

  2. Transferring your investment from one mutual fund scheme to another within the same fund house

    Correct answer

  3. C

    Moving your investment to a different AMC

  4. D

    Withdrawing money from your mutual fund

Why this is the answer

A switch involves moving your investment from your current mutual fund scheme to another scheme, but it must be within the same fund house. This is different from redeeming completely or changing distributors.

Test yourself for real

Take a full General NISM mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.