n NISM Certifications
X NISM Series X
Medium

If an investor seeks stable returns from equities, which category of stocks should they prefer?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Small Cap Stocks

  2. B

    Mid Cap Stocks

  3. Large Cap Stocks

    Correct answer

  4. D

    All of the above

Why this is the answer

Large cap stocks are generally less volatile and offer more stability, making them suitable for conservative investors seeking stability.

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