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

A mutual fund manager is planning to invest in Indian pharma companies as these companies are setting up new manufacturing capacities. Identify the investment style of the fund manager.

Practice question from NISM Series V A - Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Value investment style

  2. B

    Cyclical investment style

  3. C

    Target investment style

  4. Growth investment style

    Correct answer

Why this is the answer

Growth investing involves selecting stocks of companies that are expected to grow at an above-average rate compared to other companies in the market. The pharma companies with new manufacturing capacities are likely to experience growth, which aligns with this style.

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