NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Scheme Related Information
An investor wants a scheme that allows investment only in a fixed number of units at launch and trades on a stock exchange, with no continuous sale and repurchase by the fund. Which type of scheme is this?
This describes a closed-ended scheme listed on a stock exchange. Units are issued only during the New Fund Offer, and investors exit by selling on the exchange rather than redeeming with the fund. Open-ended schemes offer continuous transactions, while an SIP is merely a way of investing.
- AOpen-ended scheme
- BClosed-ended scheme listed on an exchangeCorrect
- CInterval scheme with no listing
- DSystematic investment plan
Explanation
A closed-ended scheme has a fixed maturity and units are sold during the New Fund Offer only; liquidity is provided by listing on a stock exchange, where units are traded. An open-ended scheme offers continuous purchase and redemption with the fund, and an SIP is an investment method, not a scheme type.
Did you get it right without looking?
One question tells you little. A timed set on Scheme Related Information shows your real accuracy, how long you take and where you lose marks.
More Scheme Related Information questions
- Which of the following best describes a Dynamic Asset Allocation or Balanced Advantage Fund as per SEBI categorisation?
- A mutual fund scheme has a portfolio turnover ratio calculated as the lower of purchases or sales divided by average net assets. During a ye…
- An investor invests Rs 1,00,000 in an ELSS scheme through a lump sum on 1 June 2024. Which statement about the lock-in is correct?
- Under SEBI categorisation, which statement about a Dynamic Asset Allocation or Balanced Advantage Fund is correct?
- Which of the following best describes a Fixed Maturity Plan (FMP)?
- An ELSS (Equity Linked Savings Scheme) has which of the following features?