NISM 5B Mutual Fund Foundation Certification Exam Notes

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  • PRI Limitation: Understates returns by excluding dividends.
  • Systematic Risk Management: Limited by market exposure, not diversification.
  • Unsystematic Risk Reduction: Achieved through diversified investments.
  • Credit Risk Analysis: Involves in-house credit research by AMCs.
  • Interest Rate Sensitivity: Longer duration funds are more sensitive.

NISM 5B Mutual Fund Foundation

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