n NISM Certifications
X NISM Series X
Medium

A significant drawback of alternative investments is low transparency, as these investments typically involve complex structures, private placements, and less frequent disclosures, making it challenging for investors to accurately assess underlying risks and performance.

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

    Scarcity of good fund managers

  2. B

    Stringent reporting requirements

  3. C

    AIFs are only for risk-averse investors

  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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