n NISM Certifications
X NISM Series X
Medium

A private equity fund primarily invests in __________.

Practice question from NISM Series XB- Investment Adviser (Level 1) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Early-stage startups

  2. Later-stage businesses

    Correct answer

  3. C

    IPOs

  4. D

    Takeovers

Why this is the answer

Private equity typically invests in established businesses seeking expansion or restructuring, unlike venture capital which focuses on startups.

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