n NISM Certifications
X NISM Series X
Medium

Which investment option involves the highest volatility risk due to equity exposure?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    NPS Tier 1

  2. ELSS

    Correct answer

  3. C

    Public Provident Fund

  4. D

    Bank Fixed Deposits

Why this is the answer

ELSS funds predominantly invest in equities, making them subject to market volatility, unlike PPF or fixed deposits, which are low-risk.

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