n NISM Certifications
X NISM Series X
Medium

A hedge fund is classified as which type of AIF?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Category 1

  2. B

    Category 2

  3. Category 3

    Correct answer

  4. D

    None of the above

Why this is the answer

Hedge funds and similar complex strategies fall under Category 3 AIFs, employing leverage and derivatives.

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