Question

Which of the following statement/s about mutual funds is/are correct?

• A. Distribution of any income in advance on a monthly basis or otherwise is not permitted.
• B. Mutual funds are listed on stock exchanges.
• C. Lock in period for repurchase of units should not be more than 36 months.
• D. All of the above

Answer 1

Answer: (D)

All of the above

A mutual fund is a professionally managed investment fund that accumulates money from many investors to purchase securities who may be retail or institutional in nature. Mutual funds are listed in stock exchanges and the lock in period to repurchase the sold units of these funds should not be more than 36 months. Advanced income from these funds is not permitted on any basis even if the future of the funds are certain.