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

Which expenses can be charged by the AMC to a mutual fund scheme?

Practice question from NISM series VA - Mid length mock test — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Expenses which are incurred to manage the fund

    Correct answer

  2. B

    Expenses which are incurred to launch the fund

  3. C

    Expenses which are incurred by the AMC

  4. D

    Expenses which are incurred by the investors in buying the fund

Why this is the answer

The AMC (Asset Management Company) can charge management fees and recurring expenses to the mutual fund scheme. This includes the costs related to managing the fund, such as portfolio management, administration, and other operational expenses. Expenses incurred for launching the fund or costs borne by investors are not charged directly to the scheme.

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