n NISM Certifications
X NISM Series X
Medium

Which investment option is most suitable for a retail investor?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    AIF, due to higher returns

  2. B

    PMS, due to high minimum investment

  3. Mutual Funds, due to lower minimum investment

    Correct answer

  4. D

    PMS, for customized portfolios

Why this is the answer

Mutual funds are accessible to retail investors because they require relatively low initial investments and offer diversification, unlike PMS or AIF which cater to high-net-worth individuals.

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