Alternative investment is defined as a financial asset that does not fall into one of the conventional investment categories like stocks, bonds, or cash. It includes assets such as real estate, private equity, hedge funds, commodities, and other non-traditional assets.

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

Financial planning
B

Mutual fund
C

Personal property
Financial asset

Correct answer

Why this is the answer

Alternative investments are financial assets outside the traditional categories, offering diversification and potentially higher returns.

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NISM Series XIX A- Alternative Investmen…