n NISM Certifications
V-A NISM Series V-A
Medium

Which of the below investors will require the approval of the board before investing in mutual funds?

Practice question from Nism VA Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Non Resident investors

  2. Institutional investors

    Correct answer

  3. C

    High Networth investors

  4. D

    Retail investors

Why this is the answer

Institutional investors typically require approval from their board of directors before making investments in mutual funds. This is because institutional investors are large entities and their investment decisions involve more formal approval processes compared to retail or high-net-worth individuals.

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