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

Who cannot invest in Mutual Funds in India?

Practice question from NISM Series V A - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Minors

    Correct answer

  2. B

    HUFs

  3. C

    NRIs

  4. D

    All of the above

Why this is the answer

Minors (those under the age of 18) cannot directly invest in mutual funds as they cannot legally enter into contracts. However, they can invest through their guardians. HUFs (Hindu Undivided Families) and NRIs (Non-Resident Indians) are allowed to invest in Indian mutual funds.

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