n NISM Certifications
X NISM Series X
Medium

Is it true that the fair value of an AIF’s underlying investments, adjusted for liabilities, indicates the investor’s fund interest value?

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. Yes

    Correct answer

  2. B

    No

Why this is the answer

NAV, based on fair value adjusted for liabilities, provides the best estimate of the investor’s interest in the fund.

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