NISM 5B Mutual Fund Foundation Certification Exam Notes

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  • Financial Needs: Investors have four broad financial needs: wealth creation, income generation, liquidity, and tax savings.
  • Inflation Impact: Inflation erodes purchasing power, necessitating investments that outpace inflation for wealth preservation.
  • Equity Volatility: Equity investments historically exhibit higher volatility but offer potential for long-term growth.
  • Debt Certainty: Debt instruments provide more predictable returns compared to ownership assets like equity or real estate.
  • Real Estate Illiquidity: Real estate investments are less liquid due to high transaction costs and time required for sale.

NISM 5B Mutual Fund Foundation

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