n NISM Certifications
X NISM Series X
Medium

Why will the returns to the investor who has used the Direct Access facility be higher?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Due to lower distribution costs

  2. B

    Due to lower fixed costs

  3. C

    Due to lower portfolio management costs

  4. All of the above

    Correct answer

Why this is the answer

Direct plans save costs on commissions and intermediary fees, resulting in higher net returns.

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