alleryStart learning →Which SEBI scheme category has a lock-in of 5 years or till retirement, whichever is earlier?
AAggressive Hybrid Fund
BRetirement Fund
COvernight Fund
DIndex Fund
Answer & Solution
Correct answer: B. Retirement Fund
1. Retirement Fund is a Solution Oriented category defined by SEBI.
2. It carries a lock-in of 5 years or till retirement, whichever is earlier.
3. The lock-in aligns investor behaviour with the long-term goal of retirement.
4. Overnight funds, index funds and aggressive hybrids do not carry lock-ins.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 2 "Concept and Role of a Mutual Fund", §2.2.4D(1)_
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