Multiple choice

Which of the following is not false about a mutual fund?

  1. Open ended funds can be sold in secondary market

  2. Closed ended fund does not have a fixed tenure

  3. Open ended funds do not calculate their NAV on every business day

  4. The NAV of a closed ended fund has to be calculated at least once a week
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Option A is false (open-ended funds are NOT sold in secondary market - they're bought/sold directly from the AMC). Option B is false (closed-ended funds DO have fixed tenure). Option C is false (open-ended funds MUST calculate NAV daily). Only D is true - SEBI mandates closed-ended funds calculate NAV at least weekly, making it 'not false'.

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