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

Segregated portfolio means _________.

Practice question from Nism VA Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    a portfolio which is kept aside for a ‘rainy day’ or contingency fund

  2. a portfolio which is created out of debt or money market securities affected by a credit event

    Correct answer

  3. C

    a portfolio which is left after removing poor credit quality papers

  4. 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.

Test yourself for real

Take a full NISM Series V-A mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.