n NISM Certifications
NSM General NISM
Medium

Which statement best describes the risk in SIFs?

Practice question from Advanced B1 S2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Returns are government guaranteed

  2. B

    Risk depends only on market movement

  3. Strategies and execution quality heavily influence outcomes

    Correct answer

  4. D

    SIFs have no derivative exposure

Why this is the answer

SIFs involve strategy-driven investing where execution, hedging, positioning, and market assumptions play a major role in performance.

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