n NISM Certifications
XV NISM Series XV
Medium

Which of the following is a characteristic of debt mutual funds?

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

Options

  1. A

    Guaranteed returns

  2. Invest primarily in bonds and fixed-income securities

    Correct answer

  3. C

    Invest in equities only

  4. D

    High risk like equity funds

Why this is the answer

Debt funds invest mainly in bonds, government securities, and other fixed-income instruments. Returns are not guaranteed (option A), they are not equity-focused (option C), and risk is generally lower than equity funds (option D).

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