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

Identify the category of mutual fund scheme in which the Net Asset Value (NAV) has to be declared for up to 4 decimal points?

Practice question from Nism VA Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Index funds

  2. Large cap funds

    Correct answer

  3. C

    Small cap funds

  4. D

    Hybrid funds

Why this is the answer

SEBI mandates liquid funds NAV to 4 decimals because of huge institutional inflows/outflows. Equity/index/hybrid funds → only 2 decimals.

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