n NISM Certifications
XXI NISM Series XXI-A
Medium

A group of individuals wishes to invest Rs. 1 crore in a PMS for 6 months. Are they eligible to invest?

Practice question from NISM XXI A for PMS - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Yes, if they form themselves as an 'Association of Persons' (AOP)

    Correct answer

  2. B

    No, since the minimum investment period in PMS is three years

Why this is the answer

An AOP is eligible to invest in PMS; there is no fixed minimum investment period.

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