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

Mr. Anand has Rs. 5 lakhs to invest but may need money in the short term. In which of these funds should he NOT invest?

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

Options

  1. A

    Liquid Fund

  2. B

    Money-market fund

  3. Index fund

    Correct answer

  4. D

    Overnight fund

Why this is the answer

For short-term needs, Mr. Anand should invest in debt funds like liquid funds or overnight funds. Index funds, being equity funds, may have stock market risks that could result in losses in the short term.

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