Skip to content

NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Mutual Fund Scheme Selection

A retired investor in her late 60s needs regular income and wants low volatility with capital preservation as the main priority. Which category of mutual fund scheme is generally the most suitable starting point for her?

A short duration or conservative hybrid debt-oriented fund is most suitable, because the retiree wants regular income, low volatility and capital preservation. Equity categories such as sectoral, thematic and small cap funds are highly volatile and concentrated, so they do not match this low-risk objective.

  1. ASectoral equity fund
  2. BSmall cap fund
  3. CShort duration or conservative hybrid debt-oriented fundCorrect
  4. DThematic equity fund

Explanation

Suitability depends on risk profile, horizon and objective. A retiree prioritising income and capital preservation is best matched with debt-oriented or conservative hybrid schemes. Sectoral, small cap and thematic equity funds carry high volatility and concentration risk.

Did you get it right without looking?

One question tells you little. A timed set on Mutual Fund Scheme Selection shows your real accuracy, how long you take and where you lose marks.

Practise Mutual Fund Scheme SelectionFree diagnostic mock

More Mutual Fund Scheme Selection questions