n NISM Certifications
X NISM Series X
Medium

The primary focus of a Private Equity (PE) fund is to ________.

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Fund early-stage startups

  2. Fund later-stage businesses

    Correct answer

  3. C

    Focus on publicly traded firms

  4. D

    Provide financial loans to companies

Why this is the answer

PE funds typically invest in established companies seeking expansion or restructuring capital, not early startups.

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