n NISM Certifications
NSM General NISM
Medium

Which of the following is a characteristic of Category III AIFs?

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

Options

  1. A

    Only invests in infrastructure

  2. B

    Focuses only on debt securities

  3. C

    Cannot use leverage

  4. Uses hedge fund and complex strategies

    Correct answer

Why this is the answer

Category III AIFs are known for sophisticated strategies such as long-short investing, arbitrage, and leverage-based trading approaches.

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