n NISM Certifications
X NISM Series X
Medium

Which level of expertise is more required when investing directly in equities compared to mutual funds?

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

    Both require similar expertise in a bull market

  2. B

    Online information makes both easy

  3. C

    Mutual funds require more expertise due to many categories

  4. Direct equities require higher expertise due to numerous stocks

    Correct answer

Why this is the answer

Investing directly in stocks demands detailed analysis and selection skills among thousands of options, whereas mutual funds involve less hands-on management.

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