n NISM Certifications
X NISM Series X
Medium

When signing an investment adviser agreement, what should the investor avoid doing?

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. Falling for promises of very high returns

    Correct answer

  2. B

    Ensuring advice is suitable to risk profile

  3. C

    Giving the adviser sufficient time to show results

Why this is the answer

Investors should avoid promises of guaranteed or exorbitant returns, which are often misleading and unsustainable.

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