What is the NISM 21B exam?
The NISM Series XXI-B: Portfolio Managers Certification Examination is a SEBI-mandated qualifying exam for principal officers and employees of portfolio management services (PMS) providers who are directly involved in fund management, research, dealing, or sales for clients. It is conducted by the National Institute of Securities Markets (NISM) and covers investment fundamentals, portfolio theory, portfolio management operations, and the regulatory framework governing portfolio managers in India.
What this practice test covers
- Investment fundamentals: stocks, fixed income securities, derivatives, mutual funds, and market indices
- Portfolio theory and strategy: information efficiency, behavioural finance, and modern portfolio theory
- Equity and fixed income portfolio management strategies
- Portfolio management operations: the portfolio manager's role, the PMS process, and performance measurement
- Manager evaluation and performance attribution
- Taxation, governance, ethics, and regulatory compliance for portfolio managers
Passing the NISM 21B exam
NISM 21B is a 150-mark computer-based test — 60 independent multiple choice questions (60 marks) plus 9 case-based questions (90 marks) — to be completed in 2 hours, with a passing score of 60%. It carries negative marking of 25% of the marks assigned to a question for every wrong answer, so accuracy matters as much as coverage. NISM can revise its criteria, so always verify the current passing marks and marking scheme on nism.ac.in before registering.
Why practice with mock tests
Reading the official workbook builds conceptual understanding, but a timed mock test reveals what you can actually answer under exam conditions. Because NISM 21B penalises wrong answers and mixes standalone MCQs with case-based questions, full-length mocks help you judge when to attempt and when to skip, surface the topics you keep getting wrong, and remove surprises on exam day.