Question 83 of 90
Which of these funds has the highest risk?
A
Index Funds
B
Diversified Equity Fund
C
Long Duration Funds
D
Gilt Funds
Correct Option:
B
Explanation
Diversified Equity Funds invest primarily in equities, which generally carry the highest market risk. Index Funds also invest in equities but passively track an index. Long Duration Funds mainly face interest rate risk, while Gilt Funds invest in government securities and have very low credit risk.
