n NISM Certifications
X NISM Series X
Medium

The category of investors not suitable for investing in an AIF is individuals with no risk-taking capacity, as most AIF investments involve illiquid, unlisted securities requiring high risk appetite and long-term commitment. High net worth or risk-tolerant investors are generally more suitable, while risk-averse investors should avoid such schemes.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Members of a HUF

  2. B

    Individuals less than 60 years of age

  3. Individuals with no risk-taking capacity

    Correct answer

  4. D

    Partners of a firm

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

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NISM Series XIX A- Alternative Investmen…