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

In which categories of stocks do Multi-Cap equity funds invest in?

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

Options

  1. A

    Mostly large cap stocks only of various companies

  2. B

    Mostly mid cap stocks only of various companies

  3. C

    Mostly small cap stocks only of various companies

  4. A mix of large, mid and small cap stocks

    Correct answer

Why this is the answer

Multi-cap funds invest across all market capitalization categories, including large, mid, and small cap stocks. This strategy helps diversify the portfolio to take advantage of opportunities across different segments of the market.

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