n NISM Certifications
XXI NISM Series XXI-A
Medium

An investor should avoid investments in _______ when his goal is capital preservation.

Practice question from NISM XXI A for PMS - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Convertible Bonds

    Correct answer

  2. B

    Government Bonds

  3. C

    Non-Hybrid fixed income securities

  4. D

    Non-convertible corporate bonds

Why this is the answer

Convertible bonds carry equity risk due to their convertibility feature, making them less suitable for capital preservation.

Test yourself for real

Take a full NISM Series XXI-A mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.