NISM-Series-19D: Category I and II Alternative Investment Fund Managers Mock Tests

Examination Objectives 

• Gain a brief understanding of the investment landscape and various types of investments, including traditional and alternative asset classes.
• Develop a detailed understanding of Alternative Investment Funds (AIFs) management, covering:
  • The suitability of AIF products and their role in portfolio diversification.
  • The AIF ecosystem and the functions of its various service providers.
  • The roles of AIF Managers and their key management teams in performing fund management duties, fund governance, and managing conflicts of interest.
  • Fund structures, fee structures, performance measurement techniques and their interpretations, and the importance of performance benchmarking.
  • Various investment strategies, investment due diligence processes, and the governance structure in AIFs as followed by investors.
  • The Code of Conduct for AIFs, AIF Managers, and their key management teams.
  • The legal documentation involved and the significance of negotiations among stakeholders in the AIF domain.
  • Valuation techniques used, the role of third-party registered valuers, and fund monitoring and reporting.
  • The various exit options available to AIFs.
  • Taxation aspects and related regulations for Category I and II AIFs in India.
• Understand the regulatory environment in which AIFs operate in India, including regulations such as SEBI (AIF) Regulations, FEMA, PMLA, SEBI (PIT) Regulations, and SEBI (PFUTP) Regulations.

Assessment Structure 

• It consists of 60 multiple-choice questions, each worth 1 mark, contributing a total of 60 marks.
• There are 4 case-based questions, with each case comprising 5 sub-questions, and each sub-question is worth 2 marks, totaling 40 marks (4 cases * 5 questions/case * 2 marks/question).
• The total duration for the examination is 2 hours.
• Candidates must achieve a minimum score of 60% (60 marks out of 100) to pass the examination.
• A negative marking of 25% of the marks assigned to a question will be applied for incorrect answers.
• Candidates should be proficient in using Microsoft Excel or OpenOffice Calc for numerical computations, as these software programs are available at the test centres.
• The sample questions provided in the workbook are for reference only, and the difficulty level in the actual examination may vary.

Syllabus Outline with Weights

Note: As per the source, no specific marks are allocated for Chapter 2.