n NISM Certifications
NSM General NISM
Medium

Which of the following is an advantage PMS enjoys over mutual funds?

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

Options

  1. A

    Guaranteed liquidity

  2. Higher stock concentration flexibility

    Correct answer

  3. C

    Tax exemption

  4. D

    No market risk

Why this is the answer

PMS can maintain concentrated portfolios and flexible allocation strategies, unlike mutual funds that operate within stricter diversification norms.

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