n NISM Certifications
NSM General NISM
Medium

What differentiates an Index Fund from an actively managed equity fund?

Practice question from B10-S2 Product Expertise — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Index Funds try to outperform the market

  2. Index Funds replicate the performance of a particular market index passively

    Correct answer

  3. C

    Index Funds invest only in debt instruments

  4. D

    Index Funds trade frequently like Arbitrage Funds

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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