Portfolio Managers
Comprehensive PMS Manager certification — equity & debt analysis, portfolio construction, performance, and SEBI compliance.
Exam Pattern & Marking
Detailed Syllabus
21 chapters · 150 total marks
| # | Chapter | Marks | Practice Qs |
|---|---|---|---|
| 1 | PM Equity Portfolio Strategies | 15 | 50 |
| 2 | PM Fixed Income Portfolio Strategies | 15 | 50 |
| 3 | PM Operational Aspects | 10 | 30 |
| 4 | PM Performance Measurement | 10 | 30 |
| 5 | PM Portfolio Management Process | 10 | 30 |
| 6 | PM Regulatory and Governance | 10 | 30 |
| 7 | PM Risk | 10 | 30 |
| 8 | PM Role of Portfolio Managers | 10 | 30 |
| 9 | PM Behavioural Finance | 5 | 15 |
| 10 | PM Capital Market Theory | 5 | 20 |
| 11 | PM Derivatives | 5 | 20 |
| 12 | PM Equity Investing | 5 | 20 |
| 13 | PM Fixed Income Investing | 5 | 20 |
| 14 | PM Informational Efficiency | 5 | 15 |
| 15 | PM Introduction to Indices | 5 | 15 |
| 16 | PM Modern Portfolio Theory | 5 | 20 |
| 17 | PM Mutual Funds | 5 | 20 |
| 18 | PM Portfolio Rebalancing | 5 | 20 |
| 19 | PM Taxation | 5 | 15 |
| 20 | PM Investment Landscape | 3 | 10 |
| 21 | PM Securities Markets | 2 | 10 |
| Total | 150 | 500 |
Marks per chapter reflect the official NISM syllabus weightage. Practice question counts show the bank size in our app — use them to gauge depth of preparation needed per chapter.
Key Knowledge Areas
Overview
Series XXI-B is the senior PMS exam — mandatory for principal officers and key investment personnel at SEBI-registered Portfolio Management Services (PMS) firms. It overlaps significantly with Series XV (Research Analyst) but adds portfolio construction, performance evaluation, and PMS-specific regulations.
At a glance: 100 questions · 2 hours · 60% pass mark · 0.25 negative marking · ₹1,500 + GST.
Who should take XXI-B
- Principal officers of SEBI-registered PMS firms
- Senior portfolio managers and CIOs
- Compliance officers needing PMS specialisation
- Aspirants moving from research to portfolio management
Key Knowledge Areas
Portfolio construction frameworks
| Framework | Core idea |
|---|---|
| Modern Portfolio Theory (Markowitz) | Optimal mean-variance frontier |
| Capital Asset Pricing Model (CAPM) | E(R) = Rf + β·(Rm − Rf) |
| Multi-factor models (Fama-French) | Size, value, momentum factors |
| Risk parity | Equal risk contribution per asset |
Performance evaluation
Sharpe Ratio: (Rp − Rf) / σp — risk-adjusted total return.
Treynor Ratio: (Rp − Rf) / β — risk-adjusted return per unit of systematic risk.
Jensen’s Alpha: Rp − [Rf + β(Rm − Rf)] — excess return over CAPM-implied return.
Information Ratio: (Rp − Rb) / Tracking Error — active return per unit of active risk.
Indian PMS regulatory framework
Key SEBI (PMS) Regulations 2020 provisions:
- Minimum investment: ₹50 lakh per client (raised from ₹25 lakh in 2020)
- Net worth requirement: Portfolio Manager — ₹5 crore
- Fees: Either fixed (max 2.5% of AUM) OR performance-linked (high-water mark + hurdle rate)
- Reporting: Monthly performance reports to clients; quarterly to SEBI
- Discretionary vs non-discretionary: Discretionary — manager makes decisions; non-discretionary — manager advises, client decides
Key Fact: PMS clients hold securities in their own demat account, unlike mutual funds where AMC holds in scheme name. This is the core PMS structural difference from MF.
Risk management
- Concentration limits: SEBI doesn’t impose specific limits on PMS but requires disclosure of single-issuer concentration > 10%
- Leverage: PMS managers cannot leverage — purely cash-deployed mandates
- Derivatives: Permitted only for hedging, not speculative positions
Exam Tips
Tip 1: Portfolio theory and performance metrics dominate the exam. Memorise formulas and understand interpretations — Sharpe, Sortino, Treynor, Jensen’s alpha, IR.
Tip 2: Equity and debt analysis carry ~25 marks combined. If you’ve cleared Series XV, this overlaps significantly.
Tip 3: PMS Regulations 2020 specifics (₹50 lakh min, fee structures, discretionary vs non-discretionary) are guaranteed exam topics.
Tip 4: Tax treatment of PMS gains — pass-through to client (each gain/loss appears on client’s ITR), unlike MF where tax is at scheme level for some categories.
Try the Free Quiz
Test your knowledge with our free XXI-B practice quiz — or get the full bank of 500+ XXI-B questions plus mock tests in the NISM Exam Prep app.
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