n NISM Certifications
NSM General NISM
Medium

Which statement best explains the objective of SIFs?

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

Options

  1. A

    To provide guaranteed wealth doubling

  2. B

    To eliminate market volatility completely

  3. To improve risk-adjusted returns through flexible strategies

    Correct answer

  4. D

    To replace all traditional Mutual Funds

Why this is the answer

SIFs focus on balancing return generation with risk management using more sophisticated investment approaches.

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