Question

9 aditi is working with a client who has no investment experience and wishes to invest her savings in - segregated funds. aditi created an investor profile and has a better understanding of the clients situation and needs. it is now time for her to conduct a fund analysis and make a recommendation. to which of the following should aditi mostly focus on before making a recommendation?
a. rate of commission
b. product availability
c. rate of return
d. client suitability

Explanation:

In investment, when making recommendations, especially for a client with no experience, client suitability (whether the investment product fits the client's situation, goals, risk tolerance etc.) is crucial. Rate of commission (a) is about costs, product availability (b) is about access, rate of return (c) is about performance, but suitability (d) focuses on if the investment matches the client's profile/needs, which is key before recommending.

Answer:

d. Client suitability