Ch.5 · NFO Process and Rules · hard
What is the 'prudent man' principle as applied to mutual fund investments?
0% of students got this wrong
EXPLANATION
The prudent man principle requires trustees and AMCs to manage the scheme's assets with the same care, diligence, and skill that a prudent person would exercise in managing their own financial affairs. This fiduciary standard underpins all investment decisions and is a key principle in the SEBI (Mutual Funds) Regulations, 1996.
Practising Chapter 5 one question at a time?
Try the full chapter — 100 questions, tracked score, weak area breakdown.