NISM-Series-19E: Category III Alternative Investment Fund Managers Mock Tests

Examination Objectives

• Investment Landscape Understanding: Briefly know about the investment landscape, including various types of traditional and alternative asset classes.
• Portfolio Theory Concepts: Understand the concepts of Modern Portfolio Theory and Capital Market Theory.
• AIF Management in Detail: Develop a detailed understanding of managing Alternative Investment Funds (AIFs), specifically pertaining to:
  • The suitability of AIF products and their role in portfolio diversification.
  • The AIF ecosystem, including the roles of its various service providers.
  • The responsibilities of AIF Managers and their key management team 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 and role of performance benchmarking.
  • Various investment strategies employed, investment due diligence processes, and governance structures in AIFs followed by investors.
  • The Code of Conduct for AIFs, AIF Managers, and their key management team.
  • 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.
  • The various exit options available to AIFs.
  • The taxation aspects for the fund and its investors.
• Regulatory Environment: Understand the regulatory environment in India within which AIFs operate, including regulations such as SEBI (AIF) Regulations, FEMA, PMLA, SEBI (PIT) Regulations, and SEBI (PFUTP) Regulations.

Assessment Structure

• Question Types: It comprises 60 multiple-choice questions and 4 case-based questions.
• Marking Scheme:
  • The 60 multiple-choice questions are worth 1 mark each, totaling 60 marks.
  • The 4 case-based questions each have 5 sub-questions, with each sub-question worth 2 marks, totaling 40 marks (4 cases * 5 questions/case * 2 marks/question = 40 marks).
  • The total marks for the examination are 100.
• Duration: Candidates are allotted 2 hours to complete the examination.
• Passing Score: A minimum score of 60% (60 marks out of 100) is required to pass the examination.
• Negative Marking: There is negative marking, with a deduction of 25% of the marks assigned to a question for incorrect answers.
• Software Proficiency: Candidates are advised to be proficient in both Microsoft Excel and OpenOffice Calc for numerical computations, as test centre workstations may be equipped with either.
• Sample Questions: The sample questions and caselets provided in the workbook are for reference only, and the actual examination's difficulty level may vary.

Syllabus Outline with Weights