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

What will happen to the scheme’s Net Asset Value (NAV) after the dividend is paid?

Practice question from Nism VA Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The NAV will Rise

  2. The NAV will Fall

    Correct answer

  3. C

    The NAV will remain the same

Why this is the answer

After a dividend is paid out from the mutual fund scheme, the NAV will fall by the amount of the dividend, as the value of the assets decreases due to the payout.

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