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

The benchmark for a debt mutual fund scheme could be chosen on the basis of Scheme Type and Scheme Size. State whether True or False?

Practice question from NISM Series V A - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    True

  2. False

    Correct answer

Why this is the answer

The benchmark for debt schemes is typically chosen based on the scheme type and the investment universe, not the size of the scheme. For example, liquid funds typically use short-term money market benchmarks, while gilt funds use government securities-based indices.

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