Portfolio Managers

Syllabus and chapter weightage

Weightages are taken from the official syllabus table published in the NISM workbook, so you can see exactly where the marks are.

Every chapter can be read free, no account needed — tap a chapter to open its plain-English Foundation lesson.

Sample questions

5 questions from the chapter tests, one per chapter. Pick your answer before you open the explanation.

1. Question 1 · Chapter 1: Investment Landscape

   Which statement about savers and investors is correct as per the workbook?

   1. A.Every saver is an investor
   2. B.Every investor is a saver, but not vice versa
   3. C.Savers and investors have identical goals
   4. D.Investors do not need to save first
   Show the answer

   Answer: B. Every investor is a saver, but not vice versa

   Those who save funds have the choice of investing. So every investor is a saver, but not vice versa.

   Option A reverses the direction. Option C is wrong: savers target short-term goals, investors longer-term goals. Option D contradicts the whole idea — investment is the commitment of savings.

2. Question 2 · Chapter 2: Introduction to Securities Markets

   The primary market is also called the:

   1. A.Resale market
   2. B.New issue market
   3. C.Over-the-counter market
   4. D.Derivatives market
   Show the answer

   Answer: B. New issue market

   The primary market, also called the new issue market, is where issuers raise capital by issuing securities for the first time.

   The secondary market handles already-issued securities. OTC is a segment of the secondary market. Derivatives are a type of security, not the primary market.

3. Question 3 · Chapter 3: Investing in Stocks

   Which of the following is true for equity shareholders?

   1. A.The company is contractually obliged to repay their capital
   2. B.They are entitled to fixed periodic interest payments
   3. C.They hold a residual claim and have voting rights
   4. D.They rank ahead of lenders on liquidation
   Show the answer

   Answer: C. They hold a residual claim and have voting rights

   Equity shareholders are owners with a residual claim on net assets, and they get voting rights. The company is not contractually obliged to repay them or make periodic payments.

   Option B describes lenders. Option D is reversed — residual owners come after all liabilities.

4. Question 4 · Chapter 4: Investing in Fixed Income Securities

   The feature that allows the issuing firm to retire bonds before maturity by paying a prescribed price is called:

   1. A.Callability (call option)
   2. B.Putability (put option)
   3. C.Convertibility
   4. D.Redemption
   Show the answer

   Answer: A. Callability (call option)

   A callable bond gives the issuer the right to redeem all or part of the bonds before maturity.

   A put gives the bondholder the right to sell back. Convertibility lets the holder exchange the bond for shares. Redemption is simply repayment at maturity, not an early-retirement feature.

5. Question 5 · Chapter 5: Derivatives

   In a Nifty 50 futures contract, the underlying is:

   1. A.The top traded stocks of the Nifty 50 index
   2. B.The average price of the stocks in the Nifty 50 index
   3. C.The value of the Nifty 50 index
   4. D.All of the above
   Show the answer

   Answer: C. The value of the Nifty 50 index

   The SC(R)A definition includes a contract that derives its value from the prices, or index of prices, of underlying securities. In an index future, the underlying is the value of the index itself.

   The index is not the top traded stocks, nor a simple average of prices — so "all of the above" is also wrong.

Frequently asked questions

What is the passing mark for NISM Series XXI-B?

You need 60% to pass NISM-Series-XXI-B: Portfolio Managers. On a 150-mark paper that is 90 marks.

Is there negative marking in NISM Series XXI-B?

There is negative marking of 25% of the marks for that question, so a wrong answer costs you 0.25 marks on a 1-mark question. Guess only when you can eliminate at least two options.

How long is the NISM Series XXI-B exam?

The exam runs for 180 minutes and carries 150 marks in total.

How long is the NISM Series XXI-B certificate valid?

NISM certifications are generally valid for 3 years from the date of passing, after which they must be renewed. Confirm the current position on nism.ac.in before your certificate lapses.