NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investor Services
An investor in a mutual fund scheme wants to be able to hold units in dematerialised form. Which statement correctly describes the investor's option as per SEBI rules?
An investor can opt for demat units by giving demat account details in the application form. Mutual fund units may be held either as an account statement or in dematerialised form, and the option is not restricted to close-ended schemes or to any minimum holding amount.
- AUnits can be held only in physical statement of account form
- BUnits in dematerialised form are available only for close-ended schemes
- CInvestor may choose to receive units in demat form by providing demat account details in the applicationCorrect
- DDemat units can be held only if the investor's holding exceeds Rs 1 lakh
Explanation
Mutual fund units can be held either as a statement of account or in demat form. An investor who wants demat units provides the demat account details in the application form. Demat holding is not limited to close-ended schemes, nor is there a minimum holding value requirement.
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