n NISM Certifications
XV NISM Series XV
Medium

In the context of foreign investors, portfolio investment refers to:

Practice question from NISM XV Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Investment in financial markets with management participation

  2. Investment in financial markets without management participation

    Correct answer

  3. C

    Both A and B

  4. D

    None of the above

Why this is the answer

Foreign Portfolio Investment (FPI) involves investing in financial instruments without controlling company management, unlike FDI, which includes operational control.

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