NISM 5B Mutual Fund Foundation Certification Exam Notes

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  • Commodities: Commodities like gold and silver are often used as hedges against inflation but lack income generation.
  • Liquidity: Liquidity refers to how easily an investment can be converted to cash without significant loss in value.
  • Divisibility: Divisibility assesses whether an investment can be broken into smaller units for partial liquidation.
  • Tax Deduction: Certain investments offer tax deductions, effectively increasing the investor’s return by reducing taxable income.
  • Risk and Safety: Understanding investment risks is crucial for assessing the safety and certainty of returns.

NISM 5B Mutual Fund Foundation

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