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

Which of these is an important criteria for choosing either Growth option or Dividend option in the same mutual fund scheme?

Practice question from Nism VA Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Returns on the scheme

  2. B

    Fund Manager

  3. Tax status of the investor

    Correct answer

  4. D

    Assets Managed by the scheme

Why this is the answer

The tax status of the investor is crucial in deciding between the Growth and Dividend options. The Growth option helps defer tax, while the Dividend option can lead to annual taxation, depending on the investor's tax situation.

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