n NISM Certifications
XVII NISM Series XVII
Medium

Why can't the income received from Mutual Funds be a reliable source for meeting mandatory and essential expenses?

Practice question from NISM Series XVII- Retirement Adviser Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Income from Mutual funds go down during high inflation

  2. B

    The income from Mutual Funds is regular and periodic

  3. C

    The income from Mutual Funds appreciates with time

  4. The income from Mutual Funds is not known and is unstable

    Correct answer

Why this is the answer

Mutual fund incomes are variable and uncertain, making them unreliable for covering fixed mandatory expenses.

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