NISM 5B Mutual Fund Foundation Certification Exam Notes

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  • Reinvestment Risk: Risk of reinvesting cash flows at lower rates.
  • Liquidity Risk: Difficulty in selling securities without price impact.
  • Market Risk: Affects equity funds due to market fluctuations.
  • Volatility Risk: Higher in mid- and small-cap funds than large-cap.
  • Benchmark Selection: AMCs choose benchmarks in consultation with trustees.

NISM 5B Mutual Fund Foundation

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