n NISM Certifications
X NISM Series X
Medium

How are debt funds valued in an 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

    At distress value

  2. B

    At realizable value of collaterals

  3. C

    By discounting future cash flows from sale of assets

  4. By discounting future cash flows of the debt portfolio

    Correct answer

Why this is the answer

Debt funds primarily value their investments by discounting expected future cash flows from their debt securities.

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