n NISM Certifications
NSM General NISM
Medium

Why do some affluent clients avoid investing outside their own business?

Practice question from Advanced B1 S6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    They prefer government schemes only

  2. They believe their business generates better returns

    Correct answer

  3. C

    They are unaware of financial products

  4. D

    They dislike long-term investing

Why this is the answer

Many affluent clients feel their own business gives them superior returns and greater control, so they may not initially see the value of diversified investing.

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