n NISM Certifications
X NISM Series X
Medium

An important difference between Category II and Category III AIFs is that _______.

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

    Category II invests only in debt securities

  2. Category II does not undertake leverage at the fund level

    Correct answer

  3. C

    Category II takes majority stakes in companies

  4. D

    Category II receives government concessions

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.