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Options
- A
Informing the investor of the various investment options
- B
Carefully understanding the client's financial needs
-
Encouraging the churning of investments
Correct answer
- D
Giving personalised after sales service
Why this is the answer
Churning refers to the excessive buying and selling of mutual fund investments to earn higher commissions. This practice is unethical and unfair to investors, as it may lead to unnecessary transaction costs and suboptimal performance.
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