Question 6 of 8
What is the primary objective behind SEBI laying down fair valuation principles for mutual funds?
A
To ensure that AMCs can maximize their profits
B
To ensure that every investor in the scheme gets a fair price for their investments
C
To minimize the Net Asset Value (NAV) of the scheme
D
To increase the Total Expense Ratio (TER) of the scheme
Correct Option:
B
Explanation
SEBI's fair valuation principles are designed to ensure that all investors receive a fair and accurate price for mutual fund units. They promote transparency, consistency, and equitable treatment by ensuring that securities are valued at their fair market value.
