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

True or False - Gilt schemes have more risks than liquid schemes as their NAV fluctuates more due to changes in the yield market.

Practice question from Nism VA Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

Gilt schemes, which invest in long-term government securities, are more sensitive to yield changes, leading to greater NAV fluctuations compared to liquid schemes.

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