NISM PMS Distributors ( NISM 21A ) Certification Exam Notes

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  • Income Generation: Seeks regular income through dividends or interest, often preferred by retirees.
  • Capital Appreciation: Targets wealth growth via asset value increase, typically through equities.
  • Risk-Free Rate: The return on risk-free investments like government bonds, reflecting the cost of deferred consumption.
  • Required Rate of Return: Comprises risk-free rate, inflation compensation, and risk premium for uncertainty.
  • Risk-Return Relationship: Higher risks generally correlate with higher expected returns, varying by investor risk appetite.

NISM PMS Distributors ( NISM 21A )

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