NISM Series XIX-C: Alternative Investment Fund Managers Cert. Mock Test - 3

The __________ of all securities is determined on every valuation day, and the NAV is accordingly revised to represent the ‘true worth’ of the fund portfolio as of that day.

The Investment Manager or the Sponsor of every Category III AIF shall have sufficient skin-in-the-game and a continuing interest of at least _________ of the fund corpus or Rs. 10 crore, whichever is lower.

The Surcharge is calculated on the tax liability of the assesses at these applicable rates. Further, Health and Education Cess at the rate of _______ is levied on the aggregate of tax and surcharge.

Investment Management Fees, Registrar and Transfer Agent Fees, Custodian Fees, Ongoing service charges and other costs, Distributor Commissions and Marketing Expenses are charged by ________.

________ is a type of Directional Strategy, wherein the investment manager takes both long and short positions in selected stocks or a broad-based market index, but maintains a net short exposure to the broad market.

________ charged by equity-oriented Mutual Fund schemes, as per amendments made to SEBI Regulations, have encouraged mutual fund managers to launch Category III AIFs in India and make investments, with greater flexibility.

The ________ includes product analysis on the basis of the investment strategy of the fund/scheme, inherited costs, risks and return in the fund, product suitability of the fund based on risk profiling, etc.

STT at the rate of __________ is levied on the delivery-based sale of units of equity-oriented mutual funds, traded on a recognized stock exchange in India.

The enhanced surcharge rate of 25% for foreign portfolio investors with total income above _________.

For ________, Net Worth = (Book Value of all Assets, other than intangible assets) – (Book Value of total liabilities).

The trustee shall not permit a change in the terms of the scheme, or fees and expenses that will adversely impact the interests of the investors in the fund. State whether true or false.

_________ funds are offered to investors for a limited time period, as specified by the Investment Manager, in the Placement Memorandum.

__________ is also known as Systematic Risk, such as changes in geo-political conditions, macro-economic conditions, and other market forces that are not in the control of the Investment Manager.

Category III AIF shall build the required operational efficiency and capability to suspend redemptions and shall not accept any new subscriptions or commitments from investors during the period of such suspension. This is typically done in exceptional circumstances where liquidity issues arise.

The Investment Manager and Sponsor of a Category III AIF have a ________ towards investors in the fund.

Section 111A is applicable to the following short-term capital gains, EXCEPT __________.

________ is taken by a Category III AIF to compensate the fund for financial losses arising from the death or incapacity of a key executive, such as the investment manager.

__________ is the peak-to-trough decline in the Assets under the Management of a Category III AIF, during a specific reporting period.

SEBI recently introduced the framework for _______ in the Indian securities markets.

A Category III AIF may invest by participating in a private placement of securities by the issuer or in a __________.

A _________ is perfectly symmetrical when divided into two halves by the mean of the data interpreted.

In Income Tax Act, 1961, _________ provides that income accrued to, or received by the unit holder, in the nature of ‘profits or gains from business or profession’ earned by the Investment Fund, is exempted from tax, in the hands of unit holders

Which statistical measure quantifies the level of deviations of data values from its mean?

The stated __________ is analyzed to check for the investment methodology and risk factors involved while investing in targeted securities, such as excessive limits on short positions, excessive derivative trading, and concentration limits.

A distribution having Skewness of greater than zero indicates a ______ skewed distribution.

On the date of entering into an options contract (T-day), the Total Exposure is computed as the _________ of the Option Contract.

_________ is provided to the investment manager as an incentive to outperform the hurdle rate as well as the high water mark of the units issued to a particular class of investors.

Distributors shall enter into Soft Dollar Arrangements with investment managers of a Category III AIF, without disclosing to clients. State whether True or False.

Category III AIFs operating from GIFT City need to pay GST on services received from external providers but are exempt from charging GST on Management Fees. State whether True or False.

The PPM is issued by the Category III AIF _________ of the fund to prospective investors for the purpose of inviting subscriptions to units of a new scheme

_________ is akin to an Offer Document detailing all the important information related to the Category III AIF and its proposed investment activities.

In 2006, the UNO launched the _______ based on the notion that an _______ approach can affect the performance of investment portfolios and should, therefore, be considered alongside more traditional financial factors if investors are to properly fulfill their fiduciary duty.

_______ are an indirect incentive provided to potential investors, wherein the distributor gives back a part of the commission earned from the AIF, to the investor.

_________ is the process by which the investment manager of a Category III AIF will call the capital commitment from its investors, as per the funding requirements and investment strategy of the fund.

________ may be invoked by the Indian income-tax authorities, in case any arrangements entered into by a Category III AIF are found to be impermissible avoidance arrangements.

Expected Return from an investment is a return above the Opportunity Cost of that investment. State whether True or False.

_________ is an AIF that invests in start-ups, early-stage ventures, social ventures, SMEs, infrastructure, or other sectors or areas which the government or regulators consider as socially or economically desirable and shall include Venture Capital Funds, SME Funds, Social Venture Funds, Infrastructure Funds, and such other AIFs as may be specified under the Regulations from time to time.

The third party make the valuation in accordance with ________.

What is the term used to describe the total amount drawn down by the investment manager from investors in a Category III AIF for the purpose of making investments?

Drawdown notices can be delivered physically or via Email notices. Other modes of issuance used by the Category III AIF should be clearly communicated to the investors. State whether true or false.

________ have a stated investment mandate and investment policy, as described by the Asset Management Company, managing the mutual fund.

The Capital Asset Pricing Model compares the return achieved by the fund to the ________.

Valuation of Derivative positions is done by computing the Total Exposure with the __________.

_________ payable to the Investment Manager is based on the return earned by the Category III AIF, using current market prices.

______ is difficult to implement and can be riskier, especially at times of changing macroeconomic factors and unpredictable events.

NAV per unit of each Series of units, as on a Valuation Day, is computed as its Series NAV divided by the number of units issued in such Series. State whether True or False.

________ refers to funds that are provided in a hybrid structure involving the features of both debt and equity capital.

After the Lock-in Period ends, the Exit Load charged by Investment Managers can range between _______ of the NAV of the fund.

________ is the ratio between the unrealized value of investments made by the fund and the total capital contributions made by the investors.

Members of the Investment Committee, trustee, trustee company, directors of the trustee company, directors or designated partners of the Category III AIF shall: