Sample Questions

NISM-Series-19D: Category I and II Alternative Investment Fund Managers Mock Tests — 5 random MCQs with answers & explanations

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These 5 questions are randomly selected (standard MCQs only, not case-based).

Q1 Which right lets a shareholder demand that their shares be bought on the same terms as a majority seller?

  • A. Drag along
  • B. Pre-emptive
  • C. Tag along Correct Answer
  • D. Veto
Explanation:
Tag-along rights protect small investors by letting them join in if a big investor sells their stake.

Marks: 1

Q2 ___________ is a function of the investment manager. (NISM workbook)

  • A. Entrepreneurship
  • B. Auditing the books of an AIF
  • C. Harvesting returns Correct Answer
  • D. Settling business disputes of the investee company
Explanation:
The fund cycle includes a harvesting period when investments are exited to realise returns, a function performed by the manager.

Marks: 1

Q3 What two things decide how much your investment will be worth in the future?

  • A. Time and Rate of Return Correct Answer
  • B. The manager's age and office size
  • C. The company's logo and city
  • D. The weather and the stock market name
Explanation:
The longer you stay invested (Time) and the more it grows (Rate of Return), the more money you will have at the end.

Marks: 1

Q4 What do you call the risk that comes from investing in a foreign currency?

  • A. Business Risk
  • B. Exchange Rate Risk Correct Answer
  • C. Liquidity Risk
  • D. Political Risk
Explanation:
If the value of a foreign currency drops, your investment value drops when you change it back to your own currency.

Marks: 1

Q5 Which specific tax form is used to report the income an AIF has paid or credited to its unit holders?

  • A. Form No. 64C Correct Answer
  • B. Form No. 10F
  • C. Form No. 60
  • D. Form No. 16
Explanation:
Form 64C is the official "report card" the fund sends to the investor and the tax office to show how much profit was made.

Marks: 1

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