Capital Protection Oriented Funds are typically structured by investing

Question

Accepted Answer

B. {'text': 'Debt grown back to principal plus a slice in equity', 'label': 'B'}

1. Capital Protection Funds are closed-end hybrid schemes.
2. A portion of the corpus is placed in high quality debt that grows back to the original principal at maturity.
3. The remaining portion is deployed in equities or equity derivatives to seek higher returns.
4. This structure aims to protect the invested principal without guaranteeing returns.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 2 "Concept and Role of a Mutual Fund", §2.2_

Answer

{'text': 'Entirely in equity index derivatives at all times', 'label': 'A'}

Answer

{'text': 'Only in domestic gold and physical real estate assets', 'label': 'C'}

Answer

{'text': 'Solely in short-term central government securities', 'label': 'D'}