n NISM Certifications
X NISM Series X
Medium

When the investment manager fails to achieve the hurdle rate, they will still be entitled to management fees but will not receive any additional performance-based returns.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Will not be paid management fees

  2. Paid management fees but no additional returns

    Correct answer

  3. C

    Paid management fees and additional returns

  4. D

    Paid in advance, with future performance adjustment

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…