NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Portfolio Manager
A discretionary portfolio manager differs from a non-discretionary portfolio manager mainly because the discretionary manager:
A discretionary portfolio manager decides independently on investing and managing the client's funds or securities as per the agreement, whereas a non-discretionary manager needs client consent for each transaction.
- ACan invest client funds only after obtaining the client's prior consent for each transaction
- BExercises choice in investment decisions independently on behalf of the client, as per the agreementCorrect
- CCannot charge performance-based fees
- DIs not required to enter into a written agreement with the client
Explanation
In discretionary PMS the manager takes investment decisions independently for the client within the agreement. Prior consent for every transaction applies to non-discretionary services. A written agreement is mandatory for all types.
Did you get it right without looking?
One question tells you little. A timed set on Portfolio Manager shows your real accuracy, how long you take and where you lose marks.
More Portfolio Manager questions
- Which of the following is a requirement for a portfolio manager regarding client funds under the SEBI (Portfolio Managers) Regulations, 2020…
- Under the SEBI (Portfolio Managers) Regulations, what is the minimum investment amount a client must bring in when onboarding with a portfol…
- Which of the following best describes a non-discretionary portfolio management service?
- A portfolio manager charges a fixed fee of 2% per annum on the average assets under management. A client's average AUM during the year is Rs…
- A client invests Rs 1,00,000 in a PMS with a 10% hurdle rate, 20% profit share on returns above the hurdle, with high-water mark. At the end…
- Under the SEBI (Portfolio Managers) Regulations, what is the minimum amount a client must bring in when investing with a portfolio manager, …