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

An investor who wants liquidity in his investments will invest in ______ .

Practice question from Nism VA Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Equity Linked Saving Scheme (ELSS)

  2. B

    Fixed Deposits

  3. C

    PPF

  4. Liquid Funds

    Correct answer

Why this is the answer

Liquid funds are the most liquid form of mutual funds. They invest in short-term instruments and can be easily redeemed, providing quick access to funds. Other options like ELSS, Fixed Deposits, and PPF have lock-in periods or withdrawal restrictions.

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