NISM-Series-19C: Alternative Investment Fund Managers Mock Tests

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Examination Objectives

Upon successful completion of the examination, a candidate should be able to:

  • Briefly understand the investment landscape and various types of investments, including both traditional and alternative asset classes.
  • Grasp the concepts of Informational Efficiency, Modern Portfolio Theory, and Capital Market Theory.
  • Understand in detail various aspects pertinent to the management of Alternative Investment Funds (AIFs), such as:
    • The suitability of AIF products and their role in portfolio diversification.
    • The AIF ecosystem and the functions of its diverse service providers.
    • The role of AIF Managers and their key management team in performing fund management duties, fund governance, and managing conflicts of interest.
    • Fund structure, fee structure, performance measurement techniques and their interpretations, and the importance and role of performance benchmarking.
    • Various investment strategies employed, investment due diligence processes, and governance structures followed by investors in AIFs.
    • The Code of Conduct applicable to AIFs, AIF Managers, and their key management teams.
    • The legal documentation involved and the importance of negotiations among stakeholders in the AIF domain.
    • Valuation techniques used, the role of third-party registered valuers, and processes for fund monitoring and reporting.
    • Various exit options available to AIFs.
    • Taxation aspects for the fund and its investors.
  • Know the regulatory environment under which AIFs operate in India, including SEBI (AIF) Regulations, FEMA, PMLA, SEBI (PIT) Regulations, and SEBI (PFUTP) Regulations.

Assessment Structure

The examination is composed of 90 multiple-choice questions and 6 case-based questions, with each case having 5 sub-questions. The total marks for the examination are 150.

The assessment structure is detailed as follows:

  • Multiple Choice Questions: 90 questions, each worth 1 mark, totaling 90 marks.
  • Case-based Questions: 6 cases, with each case containing 5 sub-questions worth 2 marks each, totaling 60 marks (6 * 5 * 2 = 60).

Candidates are given 3 hours to complete the examination. The passing score is 60%, which translates to 90 marks out of 150. There is a negative marking of 25% of the marks assigned to a question. Candidates are advised to be proficient with both Microsoft Excel and OpenOffice Calc for numerical computations, as test centre workstations are equipped with either of these software.

Syllabus Outline with Weights

Chapter No Chapter Name Weightage (marks)
1 Investments Landscape 2
2 Types of Investments 5
3 Concept of Informational Efficiency 3
4 Introduction to Modern Portfolio Theory 4
5 Introduction to Capital Market Theory 5
6 Alternative Investment Funds in India and its Suitability 5
7 Alternative Investment Funds Ecosystem 5
8 Alternative Investment Fund Structuring 10
9 Fee Structure and Fund Performance 20
10 Introduction to Indices and Benchmarking 5
11 Investment Strategies, Investment Process and Governance of Funds 20
12 Fund Due Diligence – Investor Perspective 10
13 Legal Documents and Negotiations 10
14 Valuation 10
15 Fund Monitoring, Reporting and Exit 10
16 Taxation 20
17 Regulatory Framework 20
  Total marks 150

Study Materials

Download or open materials for this subject.

NISM-Series-19C: Alternative Investment Fund Managers Workbook
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Exam Instructions

  • Each test contains multiple-choice questions.
  • Total 100 questions per test.
  • Navigate freely between questions.
  • Submit test to view your results.
  • Good luck!

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