n NISM Certifications
NSM General NISM
Medium

What is the main objective of using debt funds as a portfolio diversifier?

Practice question from I-B4 Session 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Maximize returns

  2. Reduce volatility

    Correct answer

  3. C

    Increase leverage

  4. D

    Avoid taxation

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

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