n NISM Certifications
X NISM Series X
Medium

The appropriate advice for an investor enthusiastic about the current bull run is to maintain their overall asset allocation according to their risk profile, rather than reacting emotionally or over-investing based on market trends.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Invest the amount and ask for more as market will continue to rise

  2. B

    Invest the amount in equity as the client is providing and is well educated

  3. The client can invest, but the overall allocation to various asset classes should be maintained

    Correct answer

  4. D

    Tell the client that its not the right time to invest as markets are very high

Why this is the answer

Maintaining asset allocation aligned with risk profile ensures disciplined investing, avoiding emotional reactions during market fluctuations.

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