n NISM Certifications
X NISM Series X
Medium

How are the underlying investments of NPS Tier 1, ELSS, PPF, and Tax Saving FDs categorized?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Similar investments with same risks

  2. B

    Loans to businesses

  3. Varying from 100% debt to 100% equity

    Correct answer

  4. D

    Not relevant due to tax benefits

Why this is the answer

These instruments differ significantly, from debt-based PPF and FDs to equity-based ELSS and NPS.

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