n NISM Certifications
XXI NISM Series XXI-A
Medium

As per SEBI, an Investment Policy Statement cannot act as:

Practice question from NISM XXI A for PMS - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A protection from downside risk emerging due to the chosen investment approach

    Correct answer

  2. B

    A benchmark against which a portfolio manager’s performance can be assessed

  3. C

    A framework for investors set to realistic expectations from their investments

  4. D

    A protection from fund managers' improper investment decisions

Why this is the answer

An IPS guides investment process but does not guarantee protection against losses or downside risks.

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