n NISM Certifications
XV NISM Series XV
Medium

What is Passive Investing?

Practice question from NISM XV Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Investing in matured businesses not affected by market volatility

  2. B

    Buying and holding a few good equity shares for the long term

  3. Investing in a broad set of securities representing an asset class

    Correct answer

  4. D

    Investing in alternate asset classes like real estate, Bitcoin, or art

Why this is the answer

Passive investing involves tracking a broad market index or asset class rather than individual stock picking, aiming to replicate market returns rather than outperform them.

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