n NISM Certifications
X NISM Series X
Medium

Which category of AIF employs diverse or complex trading strategies?

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

    Category I

  2. B

    Category II

  3. Category III

    Correct answer

  4. D

    Category IV

Why this is the answer

Category III AIFs adopt complex trading strategies, including derivatives and leverage, typical of hedge funds and high-frequency trading funds.

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