NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Introduction to Personal Financial Planning
Which of the following is a feature of a financial plan prepared by an adviser, as opposed to a one-time product recommendation?
A financial plan is comprehensive and is reviewed periodically as the client's circumstances change. Unlike a one-off product sale, it covers goals, risk, cash flows and assets together and requires monitoring and revision over time.
- AIt is comprehensive and reviewed periodically as circumstances changeCorrect
- BIt is based only on the client's tax-saving needs
- CIt is fixed once and need not be revisited
- DIt focuses only on the highest-return products
Explanation
Financial planning is an ongoing process that considers all goals, cash flows, risks and assets and is reviewed regularly when life events or markets change. The other options describe narrow or static approaches.
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