Operating expenses of an Alternative Investment Fund (AIF) include salaries of analysts, custodian fees, legal and audit costs, and fund management fees, but exclude distributor commissions, which are classified as other expenses. All these operational costs can be charged to the fund’s expenses.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

Salaries and allowances of analysts

Correct answer
B

Commission paid to the distributors
C

Finder’s fee for procuring deals
D

All of the above

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NISM Series XIX A- Alternative Investmen…