n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following is a characteristic of Active Portfolio Management?

Practice question from NISM XXI A for PMS - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Buy and hold strategy over long periods

  2. Frequent trading to outperform the market benchmark

    Correct answer

  3. C

    Relying solely on passive index funds

  4. D

    Avoiding market timing and stock selection

Why this is the answer

Active management involves frequent trading and strategic stock selection aiming to beat the market.

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