n NISM Certifications
XVII NISM Series XVII
Medium

Under the 'Bucket Strategy,' a risk-averse investor is most likely to invest funds in the first bucket for a maximum period of five years, covering the initial years of expenses.

Practice question from NISM Series XVII- Retirement Adviser Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    1 year

  2. B

    2 years

  3. 5 years

    Correct answer

  4. D

    7.5 years

Why this is the answer

The first bucket typically holds funds sufficient to meet expenses for 3 to 5 years. A risk-averse investor prefers to allocate funds for a longer duration, around five years, to ensure liquidity and safety during the initial retirement years.

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