n NISM Certifications
XV NISM Series XV
Medium

Which of the following is a key feature of a Mutual Fund?

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

Options

  1. A

    Fixed returns guaranteed

  2. Pooling of resources from multiple investors

    Correct answer

  3. C

    High exposure to a single company

  4. D

    No professional management

Why this is the answer

Mutual funds collect money from many investors to create a diversified portfolio managed by professional fund managers. Returns are not guaranteed (option A), they invest across multiple securities rather than a single company (option C), and they are professionally managed (option D).

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