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Practice Test (AMFI)
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A mutual fund may transfer investments from one scheme to another
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A
at current market rates
💡 Explanation:
SEBI regulations mandate that transfers between mutual fund schemes must be done at current market rates (determined by NAV). This protects existing investors from unfair cross-subsidization where assets could be moved at artificial prices. Transfers at cost price or fixed premiums could create advantages/disadvantages for different investor groups.