n NISM Certifications
X NISM Series X
Medium

Why do companies hire investment banks to source capital from AIFs?

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

    Higher capital adequacy ratio

  2. Professional validation and assistance

    Correct answer

  3. C

    Listed status providing guaranteed profits

  4. D

    To provide debt while AIF invests equity

Why this is the answer

Investment banks offer due diligence, valuation, and strategic advice, facilitating effective capital raising for companies.

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