A mutual fund scheme can invest ____ in the equity instruments of a company.
A
5% of the net assets
B
10% of the net assets
C
15% of the net assets
D
25% of the net assets
Correct Option:
B
Explanation
Under the SEBI (Mutual Funds) Regulations, a mutual fund scheme cannot invest more than 10% of its net assets in the equity instruments of a single company. This limit promotes diversification and reduces concentration risk.
