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

What is the primary objective behind SEBI laying down fair valuation principles for mutual funds?

Practice question from Net Asset Value, Total Expense Ratio and Pricing of Units Test — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    To ensure that AMCs can maximize their profits.

  2. To ensure that any investor in the scheme gets a fair price for their investments.

    Correct answer

  3. C

    To minimize the Net Asset Value (NAV) of the scheme.

  4. D

    To increase the total expense ratio of the scheme.

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

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