This Mock Test is designed to help learners build a thorough understanding of Portfolio Management Services and gain the expertise required to clear the NISM-Series 21A: Portfolio Management Services (PMS) Distributors Certification Exam with confidence. It covers every Test Objective and Learning Outcome prescribed by NISM, ensuring complete exam readiness.

NISM Series 21A Test Objectives & Learning Outcomes Covered

1. Investments

• Capital Preservation, Capital Appreciation, and Current Income

• Equity, Commodities, Real Estate, Fixed Income, Distressed Securities

• Direct Investments and Managed Portfolios

• Structured Products and Other Investment Opportunities

• Risk–Return Relationship, Types of Risks, and Risk Premium

• Nominal Risk-Free Rate, Real Risk-Free Rate, Expected Inflation

• Saving vs. Investment & Investment vs. Speculation

2. Introduction to the Securities Market

• Primary and Secondary Market

• Retail Participants

• Securities Market Overview

• Market Infrastructure Institutions & Key Intermediaries

3. Investing in Stocks

• Equity as an Investment

• Diversification and Equity Risk Factors

• Equity Market Overview

• Fundamental Analysis & Technical Analysis

• Stock Analysis Process

• Relative Valuation & DCF Models

• Intrinsic Value Estimation

• Corporate Governance Basics

4. Fixed Income Securities

• Types and Characteristics of Bonds

• Bond Pricing & Bonds with Options

• Duration, Volatility & Interest Rate Risk

• Fixed Income Instruments Overview

• Determinants of Bond Safety

5. Derivatives

• Definition and Purpose of Derivatives

• Forwards, Futures, Options, and Swaps

• Commodity and Currency Derivatives

• Derivatives Market Structure

• Key Concepts in Derivatives

6. Mutual Funds

• Concept, Role & Working of Mutual Funds

• Types of Mutual Fund Products

• Scheme Fact Sheets

• Key Performance Measures

• Legal & Regulatory Framework (SEBI Regulations)

• Legal Structure of Mutual Funds in India

• Investment Process in Mutual Funds

7. Role of Portfolio Managers

• Responsibilities of a Portfolio Manager

• Portfolio Managers in India

• PMS Organizational Structure

• Types of PMS

• PMS Registration Requirements

• Investor Portfolio Administration

8. Operational Aspects of PMS

• PMS Agreement Contents

• Disclosures & Onboarding Process

• Direct Onboarding in PMS

• PMS Fees, Costs & Expenses

• GIPS Standards & Best Practices

• Investor Grievance Redressal

9. Portfolio Management Process

• Investment Policy Statement (IPS)

• Life Cycle & Psychographic Analysis of Investors

• Assessing Investor Needs & Financial Position

• Asset Class Forecasting (Risk & Return)

• Investment Constraints

• Portfolio Rebalancing

• Strategic vs. Tactical Asset Allocation

• Understanding Correlation

• Steps in the Portfolio Management Process

10. Performance Measurement & Evaluation

• Risk & Return Metrics: Alpha, Beta, Sharpe, Treynor, Sortino, Information Ratio, M2

• CAGR, AMR/GMR, Annualized Returns

• TWRR, MWRR, IRR

• Gross vs. Net Return

• Pre-Tax vs. Post-Tax Return

• Portfolio Risk vs. Individual Security Risk

• Total & Downside Risk, Semi-Variance

• Cash Drag Adjusted Return

• Asset & Sector Allocation

• GIPS Standards & Advertisement Guidelines

• Due Diligence & Manager Selection

11. Taxation

• Capital Gains, Dividend, Interest Income & Business Income

• Residential Status & POEM

• Characterisation of Income

• Section 9A of Income Tax Act

• Benefits under Double Tax Avoidance Agreements

12. Regulatory, Governance & Ethical Aspects

• SEBI (Portfolio Managers) Regulations, 2020

• SEBI (Insider Trading) Regulations, 2015

• SEBI (PFUTP) Regulations, 2003

• Prevention of Money Laundering Act (PMLA), 2002

• Code of Conduct for Portfolio Managers & PMS Distributors

• Eligible Fund Managers