n NISM Certifications
X NISM Series X
Medium

Mr. Mehta, a registered adviser, recommends Mr. Rohit, a young investor with long-term goals, to invest in stock markets. Is this advice appropriate?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    No, because he has a long horizon and should choose low-risk products

  2. B

    No, because Mr. Rohit has no experience

  3. Yes, because equities suit his profile, and Mr. Mehta is qualified

    Correct answer

  4. D

    Yes, because equities will help him reach goals faster

Why this is the answer

Long-term young investors can tolerate equity risk, and qualified advisers can guide them safely.

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