NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Mutual Funds
Under SEBI's categorisation of mutual fund schemes, which statement about a Liquid Fund is correct?
A Liquid Fund invests in debt and money market securities with maturity up to 91 days. SEBI's scheme categorisation defines it this way, making it a low-duration, high-liquidity debt scheme suited to parking short-term surplus money.
- AIt invests in debt and money market securities with maturity up to 91 daysCorrect
- BIt invests in debt securities with maturity of 3 to 5 years
- CIt must invest at least 80% in equity shares of large-cap companies
- DIt invests only in government securities of over 10 years maturity
Explanation
SEBI defines a liquid fund as an open-ended debt scheme investing in debt and money market securities with maturity of up to 91 days. The other options describe different categories or none.
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