n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following is NOT a characteristic of "Hedge Funds"?

Practice question from NISM XXI A for PMS - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. They are highly regulated

    Correct answer

  2. B

    They often use leverage and derivatives

  3. C

    They typically cater to accredited investors

  4. D

    They aim for high returns with high risk

Why this is the answer

Hedge funds are less regulated compared to mutual funds.

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