NISM 5B Mutual Fund Foundation Certification Exam Notes

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  • Gold Standard: Many central banks hold gold reserves, though the gold standard has been largely abandoned.
  • Portfolio Diversification: Diversifying across asset classes reduces risk by balancing potential losses and gains.
  • Investment Goals: Investors should align investments with specific financial goals, such as retirement or education funding.
  • Time Horizon: The investment timeline influences the choice of asset class and risk tolerance.
  • Risk Tolerance: Investors’ ability to withstand losses affects their investment choices and portfolio construction.

NISM 5B Mutual Fund Foundation

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