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

In which type of fund is the risk of the investor not selecting the correct sector highest?

Practice question from NISM Series V A - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Thematic Funds

  2. Sector Funds

    Correct answer

  3. C

    Arbitrage Funds

  4. D

    Index Funds

Why this is the answer

Sector funds are risky due to concentration in a single sector. If the sector underperforms, the fund's returns are severely affected.

Test yourself for real

Take a full NISM Series V-A mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.