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

Normally, a fund manager will have to provide the maximum liquid assets for which of these funds?

Practice question from NISM Series V A - Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Open-end schemes

    Correct answer

  2. B

    Close-end schemes

  3. C

    ETF-Gold

  4. D

    ETF-Equity

Why this is the answer

Open-end funds need to maintain a portion of their corpus in liquid assets to meet redemption requests from investors. ETFs and closed-end funds do not have this requirement as they are traded on exchanges and do not need to handle direct redemption requests.

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