n NISM Certifications
X NISM Series X
Medium

SEBI does not prescribe minimum disclosure standards for guarantees of returns by AIFs; in fact, guarantees are prohibited. Returns should be market-determined and not promised or assured.

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

    True

  2. False

    Correct answer

Why this is the answer

AIFs cannot guarantee returns; such guarantees are against regulations.

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