n NISM Certifications
NSM General NISM
Medium

What is the impact of a lock-in period on an investment product that offers tax deduction?

Practice question from Taxation Test — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    It enhances liquidity.

  2. It is a trade-off between liquidity and tax deduction.

    Correct answer

  3. C

    It guarantees higher returns.

  4. D

    It makes the investment tax-free.

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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