n NISM Certifications
X NISM Series X
Medium

On what will the profit sharing fee paid to the Portfolio Management Service manager be based?

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

    It will depend on the regulatory limits

  2. B

    It will depend on the fixed costs charged

  3. It will depend on percentage sharing ratio agreed upon at the time of signing the agreement

    Correct answer

  4. D

    All of the above

Why this is the answer

Profit sharing is typically based on a pre-agreed percentage of profits as per the PMS contract.

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