n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following is a characteristic of an 'Active Investment Strategy'?

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

    It seeks to replicate an index's performance

  2. B

    It involves buying and holding for the long term without frequent trading

  3. It aims to outperform the benchmark index through research and timing

    Correct answer

  4. D

    It minimizes transaction costs by passive management

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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