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

What is the maximum permissible limit of investment a single investor can have in a scheme?

Practice question from NISM Series V A - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    5% of the corpus

  2. B

    10% of the corpus

  3. C

    20% of the corpus

  4. 25% of the corpus

    Correct answer

Why this is the answer

SEBI regulations state that no single investor can hold more than 25% of the corpus of a mutual fund scheme, and a scheme must have at least 20 investors.

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