n NISM Certifications
X NISM Series X
Medium

Mutual Funds mainly offer Index Funds, which replicate the returns of a specific index, but they may also utilize derivatives like futures and options to enhance performance, making all the options correct.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Index Funds

  2. B

    Index Futures

  3. C

    Index Options

  4. All of the above

    Correct answer

Why this is the answer

Mutual Funds primarily offer index funds but can also engage in derivatives to optimize returns, thus encompassing all options.

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