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

What is the portfolio of a 'Fund of Funds' made up of?

Practice question from Nism VA Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Money market securities

  2. B

    Equity stocks

  3. C

    Debt securities

  4. Mutual Fund schemes

    Correct answer

Why this is the answer

A Fund of Funds (FoF) invests in other mutual fund schemes rather than directly in stocks, bonds, or other assets. It provides diversification by investing across multiple mutual fund schemes.

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