n NISM Certifications
X NISM Series X
Medium

A key negative factor for the AIF industry is low transparency because these funds often involve private placements, complex structures, and less frequent disclosures, making it difficult for investors to accurately assess risks.

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

    Scarcity of good fund managers

  2. B

    Stringent reporting requirements

  3. C

    For risk-averse investors only

  4. Low transparency

    Correct answer

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

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