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

As per common disclosure, investments in mutual funds are subject to market risks, and therefore ______.

Practice question from NISM Series V A - Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Will provide insurance

  2. Will not guarantee returns or capital protection

    Correct answer

  3. C

    Will provide guarantee of returns

  4. D

    Will guarantee capital protection in the long run

Why this is the answer

Mutual funds do not offer any guarantee of returns or capital protection, as they are subject to market risks.

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