The manager or sponsor of an AIF must have a continuing interest of at least INR 5 crore or 2.5% of the fund’s corpus, whichever is lower, to align their incentives with investors.

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

A

1.5% of corpus or INR 5 crore
B

1.5% or INR 50 lakh
2.5% or INR 5 crore

Correct answer
D

2.5% or INR 50 lakh

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…