n NISM Certifications
XVII NISM Series XVII
Medium

A Mutual Fund primarily invests in equities. What will be the impact on this fund if the equity market is falling?

Practice question from NISM Series XVII- Retirement Adviser Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The Mutual fund will not be affected as the funds are usually moved into cash when the equity markets are falling

  2. B

    The returns from this fund can either move up or down depending on the strategies of the fund manager

  3. C

    The volatility in the returns will go down

  4. The returns from this fund will possibly fall as the fund invests in equities

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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