Options
- A
Concentration Risk
- B
Credit Risk
-
Interest Rate Risk
Correct answer
- 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.
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.