NISM Series XIX-C AIF Managers Certification Exam - 10
NISM Series XIX-C AIF Managers Certification Exam - 10
Q 1. What is the typical range for the management fee charged to an AIF during the commitment period?
a) 0.5% to 1%
b) 1% to 2.5%
c) 3% to 5%
d) None of the above
Q 2. What is the primary obligation of the Sponsor/Manager towards investor complaints in an AIF?
a) Ignoring complaints to maintain confidentiality
b) Addressing complaints promptly and effectively
c) Passing complaints to SEBI without intervention
d) None of the above
Q 3. What is the primary objective of Foundations and Endowments in investing in AIFs?
a) To maximize short-term profits
b) To meet philanthropic objectives
c) To gain control over invested companies
d) To achieve high liquidity in investments
Q 4. What type of document is the PPM?
a) Legal agreement binding on both parties
b) Marketing brochure
c) Offer document
d) Regulatory filing
Q 5. In what aspects do AIF managers play an alternative model of corporate governance?
a) Risk assessment
b) Exit strategy
c) Active management
d) None of the above
Q 6. What is the essential difference between venture capital and Corporate Venture Capital (CVC)?
a) Venture capital is focused on financial industry investments, while CVC is focused on strategic investments in any domain
b) Venture capital involves small firms investing in large, established firms, while CVC involves large firms investing in small, innovative firms
c) Venture capital is a pooling concept, while CVC is an on-balance sheet investment by a corporate entity
d) None of the above
Q 7. What are some of the activities performed by Fund Administrators?
a) Conducting investment research
b) Providing legal advice to investors
c) Preparing NAV calculation and valuation services
d) None of the above
Q 8. What distinguishes an endowment from a foundation?
a) Endowments invested for short-term gains.
b) Foundations primarily invest in real estate.
c) Endowments have a principal protection objective.
d) Endowments are not-for-profit organizations.
Q 9. What characterizes a Management Buy-out (MBO)?
a) Involves public investors
b) Led by external investors
c) Incumbent management seeks control
d) Common in owner-manager controlled companies
Q 10. Offshore funds are structured to invest primarily in:
a) Domestic markets
b) Emerging markets
c) Offshore markets
d) All of the above
Q 11. Offshore investment managers can take advice from domestic investment advisors to:
a) Avoid regulatory oversight
b) Gain insights into domestic markets
c) Only invest in offshore markets
d) None of the above
Q 12. What distinguishes buyout transactions from primary capital-providing investment activities?
a) Risk concentration
b) Debt aversion
c) Control acquisition
d) Tax optimization
Q 13. How many pooling vehicles are involved in a Pure Offshore Structure?
a) One
b) Two
c) Three
d) It varies depending on the structure
Q 14. When does the catch-up become available to the Manager for the Alpha Fund's new scheme?
a) Year Y0
b) Year Y1
c) Year Y2
d) Year Y4
Q 15. What are the potential benefits of introducing leverage into the financing structure of a buyout, transforming it into an LBO?
a) Increased regulatory scrutiny
b) Enhanced operational efficiency
c) Upside in Return on Equity (ROE)
d) Reduced debt burden