n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following is a 'Passive Investment Vehicle'?

Practice question from NISM XXI A for PMS - Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Actively managed mutual funds

  2. Exchange-Traded Funds (ETFs)

    Correct answer

  3. C

    Hedge funds

  4. D

    Private equity funds

Why this is the answer

ETFs typically track an index and are managed passively.

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