n NISM Certifications
X NISM Series X
Medium

What is considered a positive indicator during fund due diligence for an AIF investor?

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. Good and consistent track record of performance

    Correct answer

  2. B

    Excellent communication with investors

  3. C

    Regular and prompt statutory and tax compliance

  4. D

    High risk takers

Why this is the answer

A strong, consistent performance record indicates effective management and is a key factor in due diligence, supporting favorable investment decisions.

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