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

What is the investment of a constant amount at regular intervals in a mutual fund scheme called?

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

Options

  1. A

    Systematic Withdrawal Plan

  2. B

    Systematic Transfer Plan

  3. C

    Value Investing

  4. Systematic Investment Plan

    Correct answer

Why this is the answer

The Systematic Investment Plan (SIP) is a strategy where an investor invests a fixed amount in a mutual fund at regular intervals, such as monthly, which helps in averaging the cost of investment over time.

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