n NISM Certifications
X NISM Series X
Medium

For which category of goals can an investor consider a high yield credit risk fund?

Practice question from NISM Series XB- Investment Adviser (Level 1) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Near-term goals with high priority

  2. Near-term goals with low priority

    Correct answer

  3. C

    Long-term goals with high priority

  4. D

    All of the above

Why this is the answer

High yield credit risk funds carry higher risk and are suitable only for low-priority goals where non-achievement would not significantly impact the investor’s financial well-being.

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