n NISM Certifications
X NISM Series X
Medium

A key challenge in investing in new AIFs is the lack of tangible, verifiable information during due diligence, which makes assessment subjective and uncertain, especially for newer schemes without a proven track record.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Investment strategy relates to distressed assets

  2. Lack of tangible evidence for due diligence

    Correct answer

  3. C

    Sponsor is an NBFC

  4. D

    Scheme not registered with SEBI

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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