Options
- A
Only 1
-
Only 2
Correct answer
- C
Both 1 and 2
Why this is the answer
Market liquidity of mutual fund units can be affected by external events, including company or sector-specific occurrences. For example, a major company news event or a sectoral crisis could reduce liquidity. However, there can be a price impact on mutual fund units due to portfolio rebalancing or redemption demands, so the first statement is incorrect.
Test yourself for real
Take a full NISM Series V-A mock test.
Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.