Multiple choice

Unit holders of a scheme do not have the right to

  1. proportionate ownership of scheme's assets

  2. dividend declared for that scheme

  3. dividend declared for other schemes of the mutual fund

  4. all of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Unit holders have rights to dividends declared for the specific scheme they hold and proportionate ownership of that scheme's assets. However, different schemes in the same mutual fund house are separate trusts with distinct asset pools - unit holders have no rights to dividends from other schemes.

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