n NISM Certifications
X NISM Series X
Medium

For a risk-averse investor with Rs. 3 lakhs seeking safe, regular returns, which mutual fund type is most appropriate?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Balanced Funds

  2. Debt Funds

    Correct answer

  3. C

    Equity Funds

  4. D

    Money Market Funds

Why this is the answer

Debt funds invest in low-risk interest-bearing instruments, providing safer, more stable returns suitable for conservative investors.

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