n NISM Certifications
NSM General NISM
Medium

Which feature makes mutual funds still important in HNI portfolios?

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

Options

  1. Operational simplicity and liquidity

    Correct answer

  2. B

    Unlimited leverage

  3. C

    Mandatory customization

  4. D

    No taxation

Why this is the answer

Mutual funds continue to provide liquidity, simplicity, and diversification benefits that complement PMS and AIF allocations.

Test yourself for real

Take a full General NISM mock test.

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