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

'Not more than 25% of the Net Assets will be invested in the Derivatives Market' This statement best describes the ________ of the mutual fund scheme.

Practice question from NISM Series V A - Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Investment Objective

  2. B

    Investment Interest

  3. C

    Investment Strategy

  4. Investment Policy

    Correct answer

Why this is the answer

The investment policy outlines the specific asset allocation, investment style, and limits (such as the 25% cap on derivatives investments). The investment objective is broader and focuses on the general goals of the scheme.

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