n NISM Certifications
X NISM Series X
Medium

During the COVID pandemic, what advice should be given to adventurous investors in the accumulation phase?

Practice question from NISM Series XB- Investment Adviser (Level 1) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Liquidate holdings and stay in cash

  2. Rebalance and buy undervalued securities

    Correct answer

  3. C

    Rebalance and increase debt holdings

  4. D

    Rebalance to equal weights in debt and equity

Why this is the answer

Long-term investors, especially risk-tolerant ones, should take advantage of market downturns by buying undervalued assets, aligning with their growth objectives.

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