n NISM Certifications
X NISM Series X
Medium

Which is NOT an objective of the Investment Policy Statement (IPS)?

Practice question from NISM Series XB- Investment Adviser (Level 1) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Proper evaluation of the portfolio manager

  2. Raising return expectations

    Correct answer

  3. C

    Protecting against unethical behavior

  4. D

    Providing clear guidance to the portfolio manager

Why this is the answer

IPS aims to set realistic expectations, not to inflate them; its purpose is to guide investment strategy and safeguard interests.

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