n NISM Certifications
NSM General NISM
Medium

Scenario: A young client has a high-risk appetite and no immediate liquidity needs. Which advice fits best?

Practice question from Test Your Knowledge — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Invest aggressively in diversified equity funds

    Correct answer

  2. B

    Avoid equity, focus on debt instruments

  3. C

    Keep funds only in savings account

  4. D

    Invest entirely in fixed deposits

Why this is the answer

Younger clients with high risk tolerance can seek growth via equities for long-term wealth creation.

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