Browse Certification Practice Tests by Exam Family

CSI PMT Cheat Sheet: Portfolio Management Techniques

Review a compact Portfolio Management Techniques (PMT) cheat sheet for institutional portfolio process, regulation, operations, equity and fixed-income management, derivatives use, mandates, alternatives, performance attribution, and reporting traps before Finance Prep practice.

Use this PMT cheat sheet as a portfolio-management checklist before mixed practice. The exam usually rewards the answer that protects the mandate, applies the right asset-class decision rule, respects controls, and explains performance in a way the client can use.

Open PMT practice for the free 100-question diagnostic, topic pages, timed mocks, and the full Finance Prep route.

Exam snapshot

ItemPMT cue
ProviderCSI
ExamPortfolio Management Techniques
Format100 multiple-choice questions in 3 hours
Main practice behaviorportfolio mandate management, operations, equity and fixed-income decisions, alternatives, derivatives use, performance attribution, and client reporting
Finance Prep statuslive practice available

Topic checklist

AreaWhat to knowCommon trap
Regulation and ethicsfiduciary-like expectations, policies, conflicts, disclosure, client interesttreating compliance as separate from portfolio decisions
Institutional processobjectives, constraints, governance, IPS, benchmark, implementationchanging investments without mandate authority
Organization and operationscontrols, trade workflow, model portfolios, records, supervision, valuationignoring operational readiness
Equity portfoliosstyle, factor exposure, sector risk, active/passive decisions, risk controlschoosing the best stock story instead of the mandate fit
Fixed-income portfoliosduration, credit, curve exposure, liquidity, immunization, income needschasing yield without checking risk and horizon
Derivatives in fundspermitted use, hedging, leverage, disclosure, risk limitstreating derivatives as pure return tools
New mandatesdiscovery, constraints, benchmark, objectives, documentation, onboardingaccepting a vague objective as an investable mandate
Alternativesliquidity, valuation, fees, correlation, transparency, suitabilityassuming alternatives always diversify
Reporting and attributionbenchmark, attribution, performance explanation, client reporting, follow-upreporting performance without explaining drivers and limits

Must-know distinctions

  • Mandate fit versus asset attractiveness: the best asset may be wrong for the mandate.
  • Benchmark selection versus benchmark convenience: benchmark quality affects reporting and attribution.
  • Active decision versus operational control: portfolio changes still need process and evidence.
  • Duration exposure versus yield: fixed-income decisions require more than income comparison.
  • Attribution versus excuse: attribution explains results; it does not replace accountability or follow-up.

Common traps

  • Changing strategy without updating mandate evidence.
  • Treating model output as an approved investment decision.
  • Ignoring liquidity and valuation in alternative investments.
  • Using derivatives without a clear permitted purpose and risk-control context.
  • Reporting portfolio performance without client-relevant explanation.

Practice strategy

After each PMT set, classify misses as regulation, mandate, operations, equity, fixed income, derivatives, alternatives, attribution, or reporting. If the correct answer preserved a control or mandate boundary, drill process and operations before more asset-class questions.

Revised on Friday, May 22, 2026