Question

What is one of the risks associated with Debt Funds that investors need to understand?

a.

High returns with low risk

b.

Guaranteed returns

c.

NAV never falls

d.

Fall in NAV during market fluctuations

Answer: (d).Fall in NAV during market fluctuations Explanation:Debt Funds are not entirely risk-free, and a common risk is the fall in Net Asset Value (NAV) during market fluctuations.

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Q. What is one of the risks associated with Debt Funds that investors need to understand?

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