n NISM Certifications
X NISM Series X
Medium

What percentage of total assets must a domestic Fund of Funds (FoF) invest in underlying funds?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    75%

  2. B

    80%

  3. C

    90%

  4. 95%

    Correct answer

Why this is the answer

SEBI mandates that a FoF invests at least 95% of its assets in underlying funds to ensure close tracking and transparency.

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