n NISM Certifications
NSM General NISM
Medium

Why might some HNIs prefer PMS or AIFs over mutual funds?

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

Options

  1. Need for portfolio customization

    Correct answer

  2. B

    Guaranteed returns

  3. C

    Zero risk exposure

  4. D

    Daily fixed income

Why this is the answer

HNIs often seek customization, flexibility, exclusivity, and specialized strategies that are difficult to achieve through standard mutual funds.

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