n NISM Certifications
X NISM Series X
Medium

An institutional investor seeking steady distributions and moderate returns should invest in which type of AIF?

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

  1. A

    Category I investing in high-tech start-ups

  2. B

    Category I investing in start-ups

  3. C

    Category II investing in infrastructure companies

  4. Category II investing in rated debt structures

    Correct answer

Why this is the answer

Category II AIFs investing in rated debt securities offer more stable income streams, suitable for investors seeking moderate returns with lower risk.

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