n NISM Certifications
X NISM Series X
Medium

The correct sequence of the investment process as guided by the IPS is:

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Objectives → Asset allocation → Investments

  2. B

    Investments → Asset allocation → Objectives

  3. C

    Asset allocation → Objectives → Investments

  4. The sequence is adaptable

    Correct answer

Why this is the answer

While generally the sequence is objectives → asset allocation → investments, it can vary based on circumstances.

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