n NISM Certifications
NSM General NISM
Medium

Which investor category is generally NOT suitable for SIFs?

Practice question from Advanced B1 S2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Market-aware investors

  2. B

    Emerging HNIs

  3. First-time investors uncomfortable with complexity

    Correct answer

  4. D

    Investors seeking satellite allocation exposure

Why this is the answer

SIFs involve advanced strategies and derivative usage, making them unsuitable for investors with low risk tolerance or limited market understanding.

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