n NISM Certifications
V-A NISM Series V-A
Medium

A mutual fund scheme can invest _______ in the equity instruments of a company.

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

Options

  1. A

    5% of the net assets

  2. 10% of the net assets

    Correct answer

  3. C

    15% of the net assets

  4. D

    25% of the net assets

Why this is the answer

According to SEBI regulations, a mutual fund scheme can invest no more than 10% of its assets in the equity instruments of any single company, ensuring diversification and reducing risk.

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