n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following is not a feature of passive investment strategies?

Practice question from NISM XXI A for PMS - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Replicating market indices

  2. Frequent trading based on market timing

    Correct answer

  3. C

    Lower cost compared to active strategies

  4. D

    Less reliance on stock picking skill

Why this is the answer

Passive strategies typically involve buy-and-hold and replicating indices, not active trading.

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