n NISM Certifications
X NISM Series X
Medium

The most impactful factor on overall AIF returns is the successful management of exits, as the primary source of profit for the fund comes from profitable exit strategies like sales, IPOs, or buybacks, which realize gains and generate significant returns.

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

  1. A

    Timely tax and statutory compliance

  2. B

    Close monitoring by the Board of Trustees

  3. C

    Tight management of operating expenses

  4. Successful management of exits

    Correct answer

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

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