n NISM Certifications
NSM General NISM
Medium

Which feature differentiates SIFs from traditional Mutual Funds?

Practice question from Advanced B1 S2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Ability to run specialized strategies

    Correct answer

  2. B

    Guaranteed returns

  3. C

    Government capital protection

  4. D

    Fixed interest payouts

Why this is the answer

SIFs can use more advanced and tactical investment approaches, including long-short and derivative-based strategies.

Test yourself for real

Take a full General NISM mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.