Multiple choice

Which of the following investment products do not give guarantee for return or capital?

  1. Bank deposits

  2. Pubic provident fund (PPF)

  3. National Savings Certificates (NSC)

  4. Units of a mutual fund

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Mutual fund units do not provide any guarantee on returns or capital protection. Their performance depends on market conditions and the underlying scheme's portfolio. Bank deposits, PPF, and NSC all offer guaranteed returns and capital protection, making them safer but typically lower-return options compared to market-linked investments like mutual funds.