Final answer:
A fixed-period withdrawal plan for a mutual fund has specific requirements that investors must meet. These requirements may include a minimum balance, notice period, penalties, and limitations on withdrawals.
Step-by-step explanation:
A fixed-period withdrawal plan for a mutual fund is a method by which investors can withdraw money from the fund within a specific time period. The withdrawal requirements generally depend on the terms and conditions of the mutual fund. Some common requirements may include:
- A minimum balance or investment amount needed to initiate the withdrawal.
- A notice period indicating when the investor wants to make the withdrawal.
- Penalties or fees for early or unscheduled withdrawals.
- Limitations on the number of withdrawals that can be made within a specified time period.
It is important for investors to carefully review the prospectus or terms of the mutual fund to understand the specific withdrawal requirements.