A key factor impacting investor returns during fund performance evaluation is the operating expenses incurred on deal sourcing, which directly affect profitability and net returns.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

A

Management fees and payout frequency
Operating expenses on deal sourcing

Correct answer
C

Variance in IRR
D

Capital amount committed by sponsor

Why this is the answer

Deal sourcing costs significantly influence the net gain from investments and overall fund performance.

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NISM Series XIX A- Alternative Investmen…