NISM Series XIX-C AIF Managers Certification Exam - 7
NISM Series XIX-C AIF Managers Certification Exam - 7
Q 1. What type of investments does the investment manager have the freedom to make in the Long-Short Equity Strategy?
a) Only long positions
b) Only short positions
c) Both long and short positions
d) Only speculative investments
Q 2. What type of companies do investment managers aim to invest in with a Long-only Equity Strategy?
a) Companies with volatile stock prices
b) Companies with unpredictable business models
c) Companies with scalable and quality business models
d) Companies with high debt-to-equity ratios
Q 3. Which factor influences the investment strategy of Category III AIF managers?
a) Availability of investment bankers.
b) Risk-return objectives of investors.
c) Industry conferences.
d) Access to internal analysis reports.
Q 4. What stage of financing do Private Equity funds primarily focus on?
a) Early-stage
b) Mid-stage
c) Later stage
d) Growth stage
Q 5. What aspect of regulatory compliance should investors verify when assessing potential AIFs?
a) Compliance with international norms only
b) Compliance with domestic regulatory norms
c) Compliance with industry standards
d) Compliance with accounting standards
Q 6. How do investors typically conduct thorough evaluations of AIFs?
a) By relying solely on marketing materials provided by the fund
b) By conducting on-site visits and physically verifying claimed policies and procedures
c) By considering the fund's regulatory filings
d) By evaluating competitors' strategies
Q 7. What does a proper screening and selection process of the investment manager ensure?
a) Regulatory compliance
b) Alignment of interests
c) High returns
d) Outsourcing of management
Q 8. Why should the investment manager ensure not to breach fiduciary duty while negotiating Investor Side Letters?
a) To comply with regulatory requirements
b) To maintain transparency
c) To avoid conflicts of interest
d) To maximize investor returns
Q 9. What does the agreement with the merchant banker primarily focus on?
a) Increase the fee structure
b) Reducing the scope of work
c) Stipulating commercial terms
d) Ignoring regulatory requirements
Q 10. What responsibilities does the Investor Charter outline to investors?
a) Providing financial guarantees to the AIF
b) Maintaining confidentiality of information
c) Overseeing AIF's compliance with SEBI regulations
d) Approving changes to the AIF's investment strategy
Q 11. What is the purpose of registering the trust document with revenue officials under the Income Tax Act, of 1961?
a) To establish tax evasion
b) To provide a legal persona to the trust
c) To ensure compliance with regulatory standards
d) To negotiate investment terms
Q 12. What does the agreement with the merchant banker primarily focus on?
a) Increase the fee structure
b) Reducing the scope of work
c) Stipulating commercial terms
d) Ignoring regulatory requirements
Q 13. How does the Investment Manager differentiate between different series of units?
a) By assigning unique numbers
b) By allocating unique colors
c) Using different fonts
d) By applying different styles
Q 14. Which approach believes that assets and firms should be valued based on their current market price?
a) Discounted Cash Flow (DCF) Valuation
b) Asset-based Valuation
c) Relative Valuation
d) Enterprise Valuation
Q 15. What does the 'Price to Earnings Multiple' indicate?
a) Operational efficiency
b) Market capitalization
c) Net worth
d) Book value
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