n NISM Certifications
V-A NISM Series V-A
Medium

Which risk is higher in a Gilt Fund when compared to a Corporate Bond Fund?

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

Options

  1. A

    Concentration Risk

  2. B

    Credit Risk

  3. Interest Rate Risk

    Correct answer

  4. D

    Duration Risk

Why this is the answer

Interest Rate Risk is higher in Gilt Funds because they invest primarily in government securities, which have longer durations and are more sensitive to changes in interest rates compared to Corporate Bond Funds, which typically invest in shorter-duration corporate bonds.

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