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

What is fixed in a Closed-end fund?

Practice question from Nism VA Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The Net Asset Value

  2. B

    The Rate of Return

  3. The Unit Capital

    Correct answer

  4. D

    The Market Price

Why this is the answer

In a Closed-end Fund, the unit capital (number of units issued multiplied by face value) remains fixed) The units are not repurchased or sold by the fund; any transactions occur on the stock exchange between investors.

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