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

When there is a need to withdraw money from a scheme (i.e. repurchase/redemption), the distributor must assess the implications of ______ and ______ on the investors portfolio.

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

Options

  1. A

    entry loads and exit loads

  2. capital gains tax and exit loads

    Correct answer

  3. C

    capital gains tax and entry loads

  4. D

    entry loads and dividend tax

Why this is the answer

Before withdrawing from a mutual fund scheme, the distributor should evaluate the implications of capital gains tax and exit loads on the investor's portfolio, as both factors affect returns.

Test yourself for real

Take a full NISM Series V-A mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.

Nism VA Mock Test 3