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

For a VALUE FUND, the minimum investment in equity and equity related instruments is 50% of the total assets. State whether True or False?

Practice question from Nism VA Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    True

  2. False

    Correct answer

Why this is the answer

A value fund is an open-ended equity scheme following a value investment strategy. Minimum investment in equity & equity-related instruments is 65% of total assets. (Value investment style is an approach of picking up stocks, which are priced lower than their intrinsic value, based on fundamental analysis. When the market recognizes the intrinsic value, then the price would shoot up)

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