n NISM Certifications
X NISM Series X
Medium

As a financial advisor, what would be the recommended approach for a client who prefers minimal security management and wants easy diversification?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Persuade him to increase the number of securities gradually

  2. Ask him to buy index funds or ETFs

    Correct answer

  3. C

    Recommend a portfolio of government securities

  4. D

    Suggest stocks of diversified companies

Why this is the answer

Investing in index funds or ETFs provides instant diversification across many securities, suitable for clients seeking simplicity and broad market exposure with minimal management.

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