Skip to content

NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Operational Aspects of Portfolio Managers

Which document must a portfolio manager give to a prospective client at least two working days before entering into the PMS agreement?

The Disclosure Document must be given to the prospective client at least two working days before signing the agreement. It sets out the manager's background, investment approach, fees, risks and performance, helping the investor make an informed decision before committing funds.

  1. AThe client's annual income tax return
  2. BThe Disclosure DocumentCorrect
  3. CThe depository's transaction statement
  4. DThe exchange's circular on margins

Explanation

SEBI regulations require the portfolio manager to provide the Disclosure Document to the prospective client before the agreement is signed, at least two days earlier. It describes the manager's background, services, fees, risks and past performance. The other items are not the prescribed pre-contract disclosure.

Did you get it right without looking?

One question tells you little. A timed set on Operational Aspects of Portfolio Managers shows your real accuracy, how long you take and where you lose marks.

Practise Operational Aspects of Portfolio ManagersFree diagnostic mock

More Operational Aspects of Portfolio Managers questions