n NISM Certifications
X NISM Series X
Medium

A key external risk at the fund level for debt funds under AIF is that RBI may change the interest rate policy, which impacts the valuation and return profile of debt securities held by the fund.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    A key external risk for debt funds is that the fund manager may not have valuation experience

  2. B

    A key external risk for debt funds is that SEBI may regulate distributions

  3. A key external risk for debt funds is that RBI may change the interest rate policy

    Correct answer

  4. D

    A key external risk for debt funds is that the fund may be subject to RBI’s provisioning norms

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

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