n NISM Certifications
NSM General NISM
Medium

What does ‘drawdown’ generally refer to in AIF investments?

Practice question from CWM A B1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    One-time SIP installment

  2. Capital called gradually from investors

    Correct answer

  3. C

    Daily NAV fluctuation

  4. D

    Brokerage settlement

Why this is the answer

Many AIFs collect capital through drawdowns, where money is called from investors in stages as investment opportunities arise.

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