n NISM Certifications
X NISM Series X
Medium

Why is an increase in Ultra High Net Worth Individuals (UHNIs) positive for the AIF industry?

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. UHNIs seek higher differentiated returns due to risk capacity

    Correct answer

  2. B

    UHNIs attract more foreign capital

  3. C

    The government relaxes forex rules with inflows

  4. D

    SEBI simplifies regulations for acquisitions

Why this is the answer

UHNIs possess the capacity and appetite for higher-risk, higher-return investments, fueling demand for alternative investment products.

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