Q1. [1]
Investments with low risk involve minimal or no levels of risk, providing stable and often guaranteed returns. These options are ideal for risk-averse investors seeking a secure way to earn returns. Which of following is not low-risk investment ?
- (A) Fixed Deposits
- (B) Public Provident Fund (PPF)
- (C) Sukanya Samriddhi Yojana
- (D) Equities
Previously asked in CBSE board exam
2026 92 Q2 (i)
Generated by claude-sonnet-4-6 · 2026-06-15 07:06 · grounding rag
Model Answer
(D) Equities
Equities are market-linked instruments with high risk and volatile returns, unlike Fixed Deposits, PPF, and Sukanya Samriddhi Yojana, which offer stable, guaranteed returns with low risk.
Explanation
- The passage states Fixed Deposits are "for investors with low risk appetite," confirming they are low-risk.
- PPF and Sukanya Samriddhi Yojana are government-backed small saving instruments — inherently low-risk.
- Equities (shares) are securities market instruments whose returns depend on market performance, making them high-risk. This is the odd one out.
- In MCQs, eliminate options that match the category described; the one that doesn't fit is the answer.
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