n NISM Certifications
X NISM Series X
Medium

Mr. Ramesh has signed a reputed investment advisor to manage his investment needs. Which action should Mr. Ramesh NOT take?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Ensure advice is suitable for his risk profile

  2. Give control of his funds to the adviser for quick execution

    Correct answer

  3. C

    Give sufficient time for investments to show results

  4. D

    Track portfolio valuation periodically

Why this is the answer

Clients should not unilaterally hand over control unless a formal discretionary agreement exists.

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