n NISM Certifications
XV NISM Series XV
Medium

Which statement best describes passive investing?

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

Options

  1. A

    Investing in alternate assets like real estate, bitcoins, art

  2. Investing in a broad set of securities representing an asset class

    Correct answer

  3. C

    Buying and holding a few good shares long-term

  4. D

    Investing in matured businesses unaffected by volatility

Why this is the answer

Passive investing involves investing in all securities of an index or broad asset class to match its performance, without selecting individual stocks.

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