n NISM Certifications
X NISM Series X
Medium

The most influential factor when evaluating an AIF’s fund structure is the constitution of the pooling vehicle, such as Trust, LLP, or company, as it impacts tax, liability, and regulatory compliance.

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

    Size of the management team

  2. B

    Board composition

  3. C

    Custodian's profile

  4. Constitution of the pooling vehicle

    Correct answer

Why this is the answer

The legal structure of the pooling vehicle determines key operational, tax, and liability characteristics.

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