n NISM Certifications
X NISM Series X
Medium

When the nominee of a mutual fund differs from the legal heir, what is the nominee’s role?

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

Options

  1. A

    Receives the investment outright

  2. Acts as a trustee until legal heirs claim it

    Correct answer

  3. C

    Must give no-objection to heirs

  4. D

    Receives only if signed by all holders

Why this is the answer

Nominees hold assets in trust for the legal heirs, who can claim the investment after completing legal formalities.

Test yourself for real

Take a full NISM Series X mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.