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Options
- A
Only 1 is false
-
Only 2 is false
Correct answer
- C
Both 1 and 2 are false
- D
None of the above
Why this is the answer
A Multi-Cap fund invests across large-cap, mid-cap, and small-cap stocks, which makes the Nifty 500 index a suitable benchmark since it represents 500 stocks across all these categories. However, the BSE Sensex consists of only 30 large-cap stocks, so it is more suitable for large-cap funds and not for a multi-cap fund.
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