NISM PMS Distributors ( NISM 21A ) Certification Exam Notes

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  • Types of Risks: Include systematic (market-wide) and unsystematic (asset-specific) risks affecting investment returns.
  • Systematic Risk: Impacts all investments due to economic factors like interest rates or inflation, non-diversifiable.
  • Unsystematic Risk: Specific to individual securities or sectors, can be reduced through diversification.
  • Business Risk: Arises from a company’s operational or strategic failures, impacting profitability.
  • Financial Risk: Stems from market fluctuations, credit defaults, or interest rate changes.

NISM PMS Distributors ( NISM 21A )

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