n NISM Certifications
NSM General NISM
Medium

Which feature best differentiates PMS from traditional mutual funds?

Practice question from CWM A B1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Investments are held in the client’s own demat account

    Correct answer

  2. B

    PMS is completely unregulated

  3. C

    PMS only invests in debt products

  4. D

    PMS cannot customize portfolios

Why this is the answer

In PMS, securities are typically held directly in the investor’s own demat account, offering greater transparency and ownership visibility.

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