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

A mutual fund scheme shall not invest more than 10 percent of its total NAV in debt instruments. This rule is not applicable for which type of debt instrument?

Practice question from Nism VA Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Triparty repo on Government securities

  2. B

    Treasury Bills

  3. C

    Government Securities

  4. All of the above

    Correct answer

Why this is the answer

A mutual fund scheme shall not invest more than 10% of its total NAV in debt instruments comprising money market instruments and non-money market instruments issued by a single issuer that are rated not below investment grade by a credit rating agency authorized to carry out such activity under the Act. However, such a limit shall not be applicable for investments in Government Securities, Treasury Bills, and Triparty repo on Government securities or treasury bills.

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Nism VA Mock Test 1