n NISM Certifications
V-A NISM Series V-A
Medium

Which of these is a Passive Fund? (A) Gold Sector Fund (B) Gold Mining Companies Fund (C) Gold Exchange Traded Fund (D) Gilt Funds

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

Options

  1. A

    Both A and B

  2. B

    Only D

  3. Only C

    Correct answer

  4. D

    All A, B, C and D

Why this is the answer

Passive funds are designed to track the performance of a specific index or benchmark, with minimal management intervention. A Gold Exchange Traded Fund (ETF) is a passive fund that tracks the price of gold, whereas the other funds (Gold Sector, Gold Mining Companies, and Gilt Funds) are actively managed or not considered passive.

Test yourself for real

Take a full NISM Series V-A mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.