n NISM Certifications
X NISM Series X
Medium

Fund management-related risks in an Alternative Investment Fund (AIF) include risks arising from weak IPO markets, which can limit exit opportunities and impact returns. Such risks are related to the overall market environment and management’s ability to execute successful exits, rather than issues like auditor changes.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    New team of auditors were appointed in place of the exiting auditors

  2. Public issues are being underpriced due to weak IPO market

    Correct answer

  3. C

    Absence of a board to oversee the investee companies

  4. D

    Exit of the AIF Sponsor and a new Sponsor taking over

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

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