n NISM Certifications
X NISM Series X
Medium

In a fund of funds, the portfolio primarily consists of ________.

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Units of other schemes

    Correct answer

  2. B

    Derivative instruments

  3. C

    Debt securities

  4. D

    Equity instruments

Why this is the answer

A fund of funds invests mainly in units of other mutual funds, rather than direct securities.

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