n NISM Certifications
V-A NISM Series V-A
Medium

When distributors are empanelled, how should mutual funds categorize customer relationships and transactions?

Practice question from Nism VA Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Advisory, Sale

  2. Advisory, Execution

    Correct answer

  3. C

    Financial Planning, Distribution

  4. D

    Priority Sale, Retail Sale

Why this is the answer

Mutual funds categorize relationships as: Advisory: Distributor offers advice while distributing the product. Execution: For transactions where no advice is given.

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