n NISM Certifications
X NISM Series X
Medium

A major challenge in investing in a new AIF is the lack of tangible, supporting evidence for due diligence, as many newer funds have limited publicly available or verifiable information, making comprehensive assessment difficult and highly subjective.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Investment strategy relates to distressed asset sector

  2. Prior tangible evidence is not available to support the due diligence

    Correct answer

  3. C

    The sponsor of the AIF is a Non Banking Finance Corporation (NBFC)

  4. D

    The fund is not registered with SEBI

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

Test yourself for real

Take a full NISM Series X mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.