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

When an institutional investor is not allowed to invest in equity markets, the mutual fund distributor can sell _________ to such an investor.

Practice question from NISM Series V A - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Corporate Bond Fund

  2. Equity Savings Fund

    Correct answer

  3. C

    Multi Asset Allocation Fund

  4. D

    Arbitrage Fund

Why this is the answer

An Equity Savings Fund can be sold to institutional investors who are restricted from directly investing in equities, as these funds invest a portion of their assets in equity-related instruments while also investing in debt and arbitrage strategies to reduce risk.

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