n NISM Certifications
X NISM Series X
Medium

Which statement about Market Linked Debentures (MLDs) is FALSE?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Returns are variable and depend on the underlying index performance

  2. Only retail investors can invest in MLDs

    Correct answer

  3. C

    Returns are receivable only upon maturity

  4. D

    All of the above are false

Why this is the answer

MLDs are typically accessible to high-net-worth individuals rather than retail investors, making this statement false.

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