n NISM Certifications
X NISM Series X
Medium

As an investment adviser, what is the recommended approach for a client preferring minimal securities?

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 gradual increase of securities

  2. Recommend index funds or ETFs

    Correct answer

  3. C

    Suggest government securities

  4. D

    Advise stocks of diversified companies

Why this is the answer

Index funds and ETFs provide instant broad diversification with minimal management, ideal for clients seeking ease and diversification.

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