Options
-
Exit Load; Capital Gains Tax
Correct answer
- B
Exit Load; Entry Load
- C
Entry Load; Capital Gains Tax
- D
Entry Load; Beta
Why this is the answer
Both exit load (charges for redeeming units) and capital gains tax (taxes on profits from sale of units) reduce the returns on an investor's portfolio. A distributor must consider these when facilitating the redemption of mutual fund units.
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