n NISM Certifications
NSM General NISM
Medium

Why are SIFs considered more flexible than traditional Mutual Funds?

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

Options

  1. They can use tactical allocation and derivatives more actively

    Correct answer

  2. B

    They provide assured returns

  3. C

    They avoid all market risks

  4. D

    They invest only in government bonds

Why this is the answer

SIFs allow more dynamic portfolio positioning and advanced strategies compared to standard Mutual Funds.

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