Options
- A
a portfolio which is kept aside for a ‘rainy day’ or contingency fund
-
a portfolio which is created out of debt or money market securities affected by a credit event
Correct answer
- C
a portfolio which is left after removing poor credit quality papers
- D
All of the above
Why this is the answer
A Segregated Portfolio is created when a mutual fund faces a credit event affecting a specific debt instrument. In such portfolios, no redemption or subscription is allowed directly. However, the units of the segregated portfolio can be listed on a stock exchange to facilitate exit options for investors.
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