n NISM Certifications
X NISM Series X
Medium

A key risk factor for an investor in an Alternative Investment Fund (AIF) is the regulatory risk associated with the industry, which involves uncertainties related to SEBI registration, legal framework, and compliance with various regulations. This risk can impact the fund’s operations and its ability to continue functioning as intended, making it a significant concern for investors.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Demand-supply gap

  2. Regulatory risk of the AIF industry

    Correct answer

  3. C

    Data privacy of the sponsor

  4. D

    Personal tax structure of the investor

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

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