📊 NISM Series XXI-A Chapter 6 of 12 ⚖ 5 of 100 marks weightage

Ch.6: Collective Investment Vehicles

Practice questions for NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors Certification Examination, Chapter 6: Collective Investment Vehicles. This chapter looks at the pooled vehicles that sit alongside PMS: mutual funds, REITs, InvITs and AIFs. It explains what each one invests in and why investors use it, who the parties in each structure are and what they do, and how each vehicle is further divided into types or categories, including factor (smart beta) funds. Carries 5 out of 100 marks. The exam has 100 MCQs, 60% passing score, and −10% negative marking per wrong answer.

What You Will Learn in This Chapter

What a mutual fund is, how NAV-based units work and the eight ways mutual funds serve investors.
How REITs and InvITs let investors earn income from real estate and infrastructure assets without owning them directly, and the SEBI regulations that govern them.
What sets AIFs apart: privately pooled money invested in non-traditional assets and aimed at HNIs, institutions and sophisticated investors.
The parties in each structure (sponsor, trustee, AMC or investment manager, custodian, RTA, valuer, project manager) and what each one does.
The types within each vehicle: mutual fund categories and factor funds, equity/mortgage/hybrid REITs, public/private/full-fledged/developmental InvITs and AIF Categories I, II and III.

Key Terms:Net Asset Value (NAV)Systematic Investment Plan (SIP)Economies of scaleReal Estate Investment Trust (REIT)Infrastructure Investment Trust (InvIT)SponsorAsset Management Company (AMC)Factor (smart beta) fundDevelopmental InvITCategory III AIF

Free Sample Question

Q1MCQMediumEconomies of scale

How do economies of scale benefit the investors in a mutual fund?

✓Pooled large trades lower transaction costs per investor

BThe fund manager guarantees a minimum return every year

CUnit holders are exempted from all exit loads on redemption

DThe NAV is protected from falling below its launch price

💡 Pooling money from many investors lets the fund deal in large volumes, negotiate better terms and spread costs, so the cost per investor falls. Mutual funds do not guarantee returns or protect the NAV.

39 more questions in this chapter

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About this content: These practice questions are written by BullWiser from the syllabus of the NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors Certification Examination, using the workbook published by the National Institute of Securities Markets (NISM), Mumbai (September 2025 edition) as the fact source. NISM is a SEBI-established institution. Questions cover Chapter 6: Collective Investment Vehicles with verified answers and explanations. BullWiser is an independent exam preparation platform — not affiliated with NISM, SEBI or APMI. Last updated: September 30, 2026.

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