NISM Series 21A Portfolio Management (PMS) Distributors Exam

NISM Exam Preparation Mock Test for NISM-Series 21A Portfolio Management Services (PMS) Distributors Certification Exam Practice Test & Mock Test Mastering the NISM Exams with 750+ Question Bank

ABOUT THIS MOCK TEST

The NISM Exam Preparation Guide for NISM Exam Preparation Guide for NISM-Series 21A Portfolio Management Services (PMS) Distributors Certification Exam Practice Test & Mock Testseries is meticulously crafted resource covers all the essential test objectives, ensuring a thorough understanding of the exam content. Within the mock test series, learners will find comprehensive 750+ Practice Question Bank (NISM Workbook Version June 2022 edition used as reference to develop this Mock Test)

This Mock Test is part of Author’s Exam Prep Guide book with 1500+ question bank along with 100+ case based questions.

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At end of each test the correct answers along with explanations are given.

EXPLANATIONS: Double Power for Your Success!!

Apart from HINTS, another tool is given to you for your success in NISM-Series 21A Portfolio Management Services (PMS) Distributors Certification Examis Explanations along with correct answers for all tests. After each test the correct answer sheet is given along with Explanations, which are crucial for learners for several reasons:

Understanding the Concept: Explanations provide a deeper understanding of the underlying concept or principle for each test objective of NISM-Series 21A Portfolio Management Services (PMS) Distributors Certification Exam. Learners can grasp not just the answer but the reasoning and logic behind it.

Clarification of Doubts: Learners may have misconceptions or doubts about certain Learning Outcome required to achieve through NISM-Series 21A Portfolio Management Services (PMS) Distributors Certification Exam. Explanations help address these doubts, ensuring that learners have a clear and accurate understanding.

Application of Knowledge: Explanations show how the learned concept is applied in a particular context in NISM-Series 21A Portfolio Management Services (PMS) Distributors Certification Exam. This helps learners see the practical relevance of the knowledge and how it can be used in real-world situations.

Critical Thinking: By providing explanations, learners are encouraged to think critically about the subject matter for NISM-Series 21A Portfolio Management Services (PMS) Distributors Certification ExamThey can analyze the information, connect it to other concepts, and develop a more comprehensive understanding.

Most Imp. Retention and Memory: Understanding the ‘why’ behind an answer enhances memory retention. Learners are more likely to remember information when they understand the reasons and logic behind it, rather than memorizing isolated facts. This will surely be an advantage for NISM-Series 21A Portfolio Management Services (PMS) Distributors Certification Exam..

Building Confidence: Clear explanations build confidence in learners before they go for final NISM-Series 21A Portfolio Management Services (PMS) Distributors Certification Exam. When they understand the material thoroughly, they feel more confident in their ability to apply their knowledge in different situations.

Explanations play a vital role in the learning process by providing clarity, fostering understanding, and empowering learners to apply their knowledge effectively for sure success in real NISM-Series 21A Portfolio Management Services (PMS) Distributors Certification Exam.They transform learning from a memorization task into a meaningful and engaging exploration of concepts.

This Mock Test aims to equip learners with a comprehensive understanding of Portfolio Management and the relevant expertise needed for success in NISM-Series 21A Portfolio Management Services (PMS) Distributors Certification Exam.

NISM Outlined Test Objectives & Learning Outcome Covered in this Mock Test:

1. INVESTMENTS

• Capital Preservation / Capital Appreciation / Current Income

• Commodities

• Direct investments

• Distressed Securities

• Equity

• Fixed income securities: role and characteristics

• Investments through managed portfolios

• Nominal risk-free rate, real risk-free rate, and expected inflation

• Other investment opportunities

• Real Estates

• Relationship between risk and return

• Risk Premium

• saving and investment / investment and speculation

• Structured products

• Types of risks

2. Introduction to Securities Market

• Market Infrastructure Institutions and other intermediaries

• Primary and Secondary market

• Primary Market

• Retail Participants

• Secondary Market

• Securities Market

3. Investing in Stocks

• Combining relative valuation and discounted cash flow models

• Diversification of risk through equity instruments

• Equity as an investment

• Equity research and stock selection

• Fundamental Analysis

• Fundamentals Driven model – Estimation of intrinsic value

• Overview of Equity Market

• Risks of equity investments

• Stock Analysis Process

• Technical Analysis

• Understanding Corporate Governance

4. Investing In Fixed Income Securities

• Bond Characteristics

• Bond Pricing

• Bonds with options

• Determinants of bond safety

• Determining duration

• Interest rate risk

• Measuring Price Volatility of bonds

• Overview of Fixed Income Securities

• Types of Fixed Income Instruments

5. Derivatives

• Commodity and Currency Futures and Options

• Currency derivatives

• Definition of Derivatives

• Forwards

• Futures

• Options

• Purpose of Derivatives

• Structure of derivative markets

• Swaps

• Underlying concepts in derivatives

6. Mutual Fund

• Benefits of investing through mutual funds

• Concept and Role of Mutual Fund

• Fact Sheet – Scheme Related Information

• Key performance measures

• Legal and Regulatory Framework – Key SEBI Regulation

• Legal Structure of Mutual Fund in India

• Processes of investing in mutual funds

• Types of Mutual fund products

• Working of mutual funds

7. Role Of Portfolio Managers

• Administration of investor’s portfolio

• General Responsibilities of a Portfolio Manager

• Organizational structure of PMS in India

• Portfolio managers in India

• Registration requirements of a Portfolio Manager

• Types of portfolio management services

8. Operational Aspects Of Portfolio Managers

• Best Practices for the disclosures – Global Investment Performance Standards GIPS

• Content of agreement between the portfolio manager and investor

• Costs, expenses and fees of investing in PMS

• Direct On-boarding in PMS

• Disclosures to the prospective clients

• Process of On-boarding of clients

• Redressal of investors grievances

• Submitting duly filled application form

9. Portfolio Management Process

• Analysing the financial position of the investor

• Assessments of needs and requirements of investor

• Forecasting risk and return of various asset classes

• Investment Constraints

• Investment Policy Statement (IPS)

• Life cycle analysis of investor

• Psychographic analysis of investor

• Rebalancing of Portfolio

• Steps in Portfolio Management Process

• Strategic versus Tactical Asset Allocation

• Understanding correlation

10. Performance Measurement And Evaluation Of Portfolio Managers

• Alpha and Beta return

• AMR/GMR

• Annualizing return

• Assets and Sector Allocation

• Cash drag adjusted return

• Compounded Annual Growth Rate

• Due Diligence and Portfolio Manager selection

• GIPS Advertisement Guidelines

• Global Investment Performance Standards

• Gross versus net return

• Performance reporting to the Investor

• Portfolio risk versus individual risk

• Pre-tax versus post tax return

• Risk Return

• Semi variance / Semistandard deviation as a measure of downside risk

• Sharpe Ratio / Treynor Ratio

• Sortino Ratio / Information Ratio / M2 Measure

• Systematic Risk and Unsystematic Risk

• Total risk and downside risk

• TWRR/MWRR/IRR

11. TAXATION

• Business income

• Capital Gains

• Characterisation of income

• Dividend income

• Entitlement of benefit under Double Tax Avoidance Agreement

• Interest income

• Place of Effective Management (POEM)

• Residential status

• Section 9A of Income Tax Act

12. Regulatory, Governance And Ethical Aspects Of Portfolio Managers

• Code of conduct for PMS Distributors

• Code of conduct for portfolio manager

• Eligible Fund Managers

• Prevention of Money Laundering Act, 2002

• SEBI (Portfolio Managers) Regulations, 2020

• SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003

• SEBI (Prohibition of Insider Trading) Regulations 2015

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