n NISM Certifications
X NISM Series X
Medium

Which category of AIF is known for higher risk investments in early-stage companies?

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. Category I

    Correct answer

  2. B

    Category II

  3. C

    Category III

  4. D

    Category IV

Why this is the answer

Category I AIFs typically invest in startups, early-stage ventures, and social or infrastructure projects, accepting higher risks for higher growth potential.

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