n NISM Certifications
X NISM Series X
Medium

Which mutual fund option is best suited for generating fixed, regular income?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Dividend option plan

  2. B

    Systematic Transfer Plan (STP)

  3. Systematic Withdrawal Plan (SWP)

    Correct answer

  4. D

    Monthly Income Plan (MIP)

Why this is the answer

SWP allows investors to withdraw fixed amounts regularly, making it ideal for generating steady income, especially in retirement.

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