n NISM Certifications
X NISM Series X
Medium

Which statement about investment conditions for AIFs is true?

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

    They can invest un-invested funds in liquid assets of high quality

  2. B

    Large value funds for accredited investors can invest up to 75% in a single investee company

  3. C

    Only A is true

  4. Both A and B are true

    Correct answer

Why this is the answer

AIFs can hold un-invested funds in liquid assets, and large funds for accredited investors can invest up to 75% in a single investee.

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