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

Indicate which of these funds have the lowest to highest risk sequence: (A) Liquid Fund (B) Credit Risk Fund (C) Corporate Bond Fund

Practice question from NISM Series V A - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    B - C - A

  2. B

    C - A - B

  3. C

    A - B - C

  4. A - C - B

    Correct answer

Why this is the answer

Liquid funds have the lowest risk as they invest in high-quality short-term debt instruments. Corporate Bond Funds carry slightly more risk as they invest in corporate bonds rated AA and above. Credit Risk Funds are the riskiest, as they invest in lower-rated corporate bonds (below AA).

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