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

In an Arbitrage fund, the minimum investment in equity and equity-related instruments shall be ______ of total assets.

Practice question from Nism VA Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    50 percent

  2. B

    55 percent

  3. C

    60 percent

  4. 65 percent

    Correct answer

Why this is the answer

An Arbitrage Fund must invest at least 65% of its total assets in equity and equity-related instruments. These funds exploit price differences between the equity markets and the derivatives market.

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