NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Scheme Related Information
Which is the main feature of a Liquid Fund under SEBI's categorisation?
A Liquid Fund invests in debt and money market securities with a maturity of up to 91 days, which keeps interest rate risk low and makes it 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 5 years
- CIt invests only in equity shares
- DIt invests only in government securities of over 10 years
Explanation
Liquid Funds invest in debt and money market securities with residual maturity of up to 91 days. Longer maturity or equity exposure does not fit the category.
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