n NISM Certifications
X NISM Series X
Medium

How are the investments of trustees in an approved superannuation trust typically made?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    As per their own discretion

  2. B

    Based on a poll of employee preferences

  3. C

    As per the employer’s mandate

  4. As per the pattern specified in Income Tax rules

    Correct answer

Why this is the answer

Trustees invest according to the prescribed investment pattern mandated by Income Tax regulations.

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