n NISM Certifications
V-A NISM Series V-A
Medium

Identify the FALSE statement: A) When the mutual fund distributor understands the needs of his investor, one can ignore the investment objective of the mutual fund schemes. B) The best strategy in selecting a mutual fund scheme is based on its past performance

Practice question from NISM Series V A - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Only A is false

  2. B

    Only B is false

  3. Both A and B are false

    Correct answer

Why this is the answer

Both statements are false: Ignoring the investment objective: It is essential to consider the investment objective of the mutual fund schemes when making recommendations. The mutual fund's objective should align with the investor’s financial goals and risk tolerance.

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