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Which of these is a Systematic Investment Plan primarily designed to promote?
A{'text': 'One-time lump sum investing', 'label': 'A'}
B{'text': 'Guaranteed capital protection', 'label': 'B'}
C{'text': 'Immediate tax deduction on the amount invested', 'label': 'C'}
D{'text': 'Regular disciplined investing at fixed intervals', 'label': 'D'}
Answer & Solution
Correct answer: D. {'text': 'Regular disciplined investing at fixed intervals', 'label': 'D'}
1. A Systematic Investment Plan invests a fixed amount at regular intervals.
2. It promotes investment discipline useful for long-term wealth creation.
3. It is not a tax deduction scheme by itself; ELSS carries the Section 80C deduction.
4. Mutual funds do not offer guaranteed capital protection to unit holders.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 2 "Concept and Role of a Mutual Fund", §2.1.5_
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