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

Which of these statement/s is/are INCORRECT? (A) The impact of exit load can be ignored by the distributor at the time of repurchase of mutual fund units (B) When the investor wants to redeem mutual fund units, the distributor must suggest redemption from the scheme with the maximum exit load

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

Options

  1. A

    Only statement A is incorrect

  2. B

    Only statement B is incorrect

  3. Both statements A and B are incorrect

    Correct answer

Why this is the answer

Both statements are incorrect because: Statement A: The exit load impacts returns and cannot be ignored during repurchases/redemptions. Statement B: When redeeming mutual fund units, the distributor must suggest redeeming from the scheme with the minimum exit load to reduce costs for the investor.

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Nism VA Mock Test 5