n NISM Certifications
X NISM Series X
Medium

In case of Exchange Traded Funds (ETFs), what is the minimum investment in index securities as a percentage of total assets?

Practice question from NISM Series XB- Investment Adviser (Level 1) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    80%

  2. B

    85%

  3. C

    90%

  4. 95%

    Correct answer

Why this is the answer

SEBI mandates that ETFs must invest at least 95% of their total assets in securities of the index they are tracking to ensure close replication of index performance.

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