If an employee or director of an AIF chooses to invest in the fund in their individual capacity, the minimum contribution must be at least Rs. 25 lakh, aligning their investment with the high-net-worth investor criteria and ensuring significant skin in the game.

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

2.5% of the corpus
Not less than Rs. 25 Lakh

Correct answer
C

Not more than Rs 2.5 Lakh
D

Rs. 2.5 crores

Why this is the answer

Individual investors who are employees or directors must contribute at least Rs. 25 lakh to participate directly in the fund.

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NISM Series XIX A- Alternative Investmen…