n NISM Certifications
X NISM Series X
Medium

'Leveraging at fund level' is considered as a loan given by an NBFC to an AIF, enabling the fund to borrow capital for investments, thereby increasing leverage but also risk.

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

    Issue of debt securities by investee company

  2. B

    Loan to investee company by AIF

  3. Loan given by NBFC to AIF

    Correct answer

  4. D

    Loan from AIF to another AIF

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

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