Overview of Alternative Investment Funds (AIFs)
15 questions. Each answer is explained.
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Learn these topics
More units in NISM Series X-A
- Introduction to Personal Financial Planning4
- Time Value of Money14
- Evaluating the Financial Position of Clients5
- Debt Management and Loans2
- Introduction to the Indian Financial Markets4
- Securities Market Segments21
- Introduction to Investment5
- Investing in Stocks20
- Investing in Fixed Income Securities25
- Understanding Derivatives25
- Mutual Funds25
- Portfolio Manager10
- Introduction to Modern Portfolio Theory14
- Portfolio Construction Process11
- Portfolio Performance Measurement and Evaluation25
- Operational Aspects of Investment Management15
- Key Regulations15
- Ethical Issues15
- Grievance Redress Mechanism15
Exam format
| Questions | 135 · 1 or 2 marks each |
|---|---|
| Duration | 180 min · 3 hours |
| Pass mark | 60% · 90 of 150 marks |
| Negative marking | 25% · 0.25 or 0.5 marks off per wrong answer |
| Certificate validity | 3 years · from the date of the examination |
| Marks for this unit | Not published by NISM |
NISM Series X-A Investment Adviser (Level 1)
Exam rules read on NISM's site on 3 October 2026. Check the current rules on NISM's site (opens in a new tab)
What these answers assume, and when it was last checked
Each question uses the rules listed below. We last checked them on 5 September 2026. A Budget or SEBI circular can change a rate, lot size or expiry day. If a rule changes before your exam, treat the linked questions as out of date and check NISM's current workbook.
- NSE uses Tuesday expiry and BSE uses Thursday expiry. This applies from 1 September 2025.
- The January 2026 index lot sizes are NIFTY 65, BANKNIFTY 30, FINNIFTY 60, MIDCPNIFTY 120 and NIFTYNXT50 25.
- The October 2024 SEBI framework sets a minimum index contract value of Rs 15–20 lakh. Each exchange may list one weekly benchmark index.
- Option buyers pay the premium upfront from 1 February 2025. A short index option has an extra 2% Extreme Loss Margin on expiry day from 20 November 2024.
- Equity short-term capital gains are taxed at 20%. Long-term gains are taxed at 12.5% above Rs 1.25 lakh. Both rates apply from 23 July 2024.
- F&O income is non-speculative business income in ITR-3. NSE equity derivatives trade from 9:15 a.m. to 3:40 p.m.
- The final ten-minute session began on 3 August 2026. It aligns with the cash market Closing Auction Session.
- Most Securities Transaction Tax questions test the base and who pays. On an option sale, it is the premium and the seller pays. On a futures sale, it is the traded value and the seller pays.
- On exercise, Securities Transaction Tax uses intrinsic value: settlement price minus strike price. The buyer pays it.
- Two questions test the current rate. From 1 April 2026, option sales carry 0.15% on the premium and futures sales carry 0.05% on traded price. The earlier rates were 0.10% and 0.02% from 1 October 2024.
- This section uses the T+1 rolling settlement cycle. Obligations are fixed on T+1. A short delivery goes to buy-in auction on T+1 and settles on T+2.
- The trade-for-trade surveillance segment uses direct close-out. Funds pay in by 10:30 a.m. and pay out on or after 1:30 p.m. on settlement day.
- Securities pay in to the settlement pool by 10:30 a.m. They pay out directly to the client’s demat account by 3:30 p.m.
- The 3:30 p.m. deadline replaced 1:30 p.m. under SEBI’s 10 October 2024 circular. Direct client credit was required by SEBI’s 5 June 2024 circular.
- The optional T+0 cycle trades until 1:30 p.m. Obligations are fixed by 2:30 p.m. on the trade day. An early pay-in shortage is closed out directly.
- Cash-market Value at Risk margin is six times exponentially weighted moving-average volatility. It has a 9% floor for Group I, a 21.5% floor for Group II, and a fixed 50% or 75% level for Group III.
- Extreme Loss Margin is 3.5% for a share and 2% for a broad-market-index exchange traded fund. Mark-to-market margin is collected before the next day’s trading. The trade-for-trade segment has 100% upfront margin.
- Close-out uses the higher of the highest price from trade day to auction day and 20% above the auction day’s official close.
- A funds shortage costs 0.07% a day. The trading facility is withdrawn at a shortage of Rs 5 lakh or more.
- SCORES allows 21 calendar days, then two 15-day review levels. Online Dispute Resolution moves from conciliation to arbitration after the market participant and SCORES steps.
- At NSE, the Investor Protection Fund limit is Rs 35 lakh per investor for each defaulting or expelled member. This applies to claims arising after 13 August 2024.
- A Basic Services Demat Account has no annual maintenance charge up to Rs 4 lakh of holdings. It costs up to Rs 100 above that, until the Rs 10 lakh eligibility ceiling. These slabs apply from 1 September 2024.
- The rupee pairs are USD-INR, EUR-INR, GBP-INR and JPY-INR. The cross-currency pairs are EUR-USD, GBP-USD and USD-JPY.
- Each contract covers 1,000 units of the foreign currency, except JPY-INR. JPY-INR covers 100,000 yen and is quoted in rupees per 100 yen.
- The tick is 0.25 paise, or Rs 0.0025. It equals Rs 2.50 a contract.
- Rupee pairs trade from 9:00 a.m. to 5:00 p.m. A monthly contract stops trading at 12:30 p.m. two working days before the expiry month’s last business day.
- Final settlement is in cash at the FBIL reference rate on expiry day. FBIL, Financial Benchmarks India, has published this rate in place of the Reserve Bank since 2018. Premium-style European options are quoted in rupees. The buyer pays the premium in cash on T+1.
- Daily settlement is on T+1 and final settlement is on T+2.
- NSE Clearing circular 026/2020 sets SPAN margin plus Extreme Loss Margin. The futures margin is 0.50% for USD-INR, 0.15% for EUR-INR, 0.25% for GBP-INR and 0.35% for JPY-INR. A short option has 0.75%. These figures apply from 1 June 2020.
- A USD-INR client may hold 6% of total open interest or USD 20 million, whichever is higher. A trading member may hold 15% or USD 100 million.
- A resident user has one USD 100 million equivalent limit across all rupee pairs and exchanges. No document is needed below that limit, but a valid underlying contracted exposure must still exist. This clarification applies from 3 May 2024.
- The currency segment has no Securities Transaction Tax.
The exam figures (questions, time, pass mark, negative marking and certificate validity) come from NISM's own pages, read on 3 October 2026. Timed practice uses the same figures. Study with the official workbook as well.
The written-out answers on this page are hidden while your timed set runs.
All 15 questions on Overview of Alternative Investment Funds (AIFs), with answers
Q1A fund’s stated strategy is to provide equity capital to young businesses that are still developing products and may not yet generate profits. Which investment emphasis most closely matches this description?
Option A. Buying controlling stakes only in established, consistently profitable businesses
Why it is wrong: That describes a mature-company acquisition emphasis rather than the early-stage development strategy supplied.
Option B. Venture-capital investing in early-stage growth businesses — Correct answer
Option C. Holding a portfolio only of short-maturity government securities
Why it is wrong: Such securities do not represent the early-stage business ownership described in the mandate.
Option D. Lending only against predictable contractual interest payments
Why it is wrong: The fund provides equity, not merely loans with scheduled contractual interest as its stated investment basis.
Answer: B. The key features are young companies, development uncertainty and equity funding for potential future growth. Identify the business stage: the investees are young and still developing products. The absence of current profits is explicitly allowed. Identify the instrument: equity capital gives exposure to business success or failure rather than only scheduled loan repayments. Those features fit the venture-capital emphasis. This comparison describes investment strategies. It does not assert a current regulatory registration category, eligibility limit or guaranteed outcome. Remember: Compare business stage and type of investment claim, not just the fund’s marketing name.
Hint, shown before you answer in practice mode: Common mistake: Assuming early-stage equity has the same cash-flow predictability as contractual debt.
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Q2A private-equity mandate seeks controlling equity positions in established unlisted companies, with plans to improve operations and later sell the businesses. Which analytical question is most directly connected to that strategy?
Option A. Whether daily fund redemption must be available because the businesses already exist
Why it is wrong: The maturity of investee businesses does not establish daily liquidity for investors in the fund.
Option B. Whether every target must be pre-revenue because all private equity is venture capital
Why it is wrong: The mandate expressly targets established businesses. Early-stage venture investing is not the only private-equity strategy.
Option C. Whether equity ownership provides the same fixed principal repayment as a plain bond
Why it is wrong: Controlling equity ownership does not turn the investment into a bond with a specified repayment obligation.
Option D. Whether operational improvements and an eventual exit can justify the acquisition price — Correct answer
Answer: D. A controlling ownership strategy depends on business improvement, purchase valuation and the feasibility of realising an exit. The mandate specifies established companies and control positions, separating it from a purely early-stage venture strategy. Operational improvements may support higher future cash flows or exit value, but neither the improvement nor the ability to sell is certain. Fund liquidity and investor repayment rights must be read separately from company maturity. An established underlying business does not automatically make a private fund redeemable on demand. Remember: Analyse the path from acquisition through operating performance to realisable exit value.
Hint, shown before you answer in practice mode: Common mistake: Treating all private-equity strategies as identical to venture capital.
X-A-162mediumconceptual
Q3An alternative fund proposes to lend to unlisted companies under agreements requiring interest and principal payments. Which due-diligence finding most directly weakens the expected debt repayment?
Option A. The loan agreement sets out a fixed schedule of interest and principal payments
Why it is wrong: A schedule defines amounts due. Its existence does not show that the borrower has resources to honour it.
Option B. The fund’s name says it is a debt fund rather than an equity fund
Why it is wrong: The label identifies a broad approach but is not evidence of the borrower’s ability to pay.
Option C. The borrower’s shares are unlisted and do not trade daily on any stock exchange
Why it is wrong: Unlisted equity does not by itself determine whether the borrower can meet contractual debt payments.
Option D. Borrower cash flows fall short and collateral may fetch far less than the loan — Correct answer
Answer: D. Both the primary repayment source and the assumed recovery support are weak in this scenario. Interest and principal depend on the borrower’s financial resources. Insufficient cash generation directly threatens those promised payments. Collateral matters only to the extent it can be enforced and realised for an adequate amount. A stated value is not the same as recovered cash. An agreed payment schedule and a debt label do not remove credit risk. This question evaluates the stated credit facts, without assuming any particular AIF category or legal recovery outcome. Remember: Distinguish contractual payment promises from the resources available to fulfil them.
Hint, shown before you answer in practice mode: Common mistake: Treating collateral or the word debt as proof that principal cannot be lost.
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Q4An investor has a non-deferrable payment due in 12 months. A proposed infrastructure fund expressly permits no redemption for seven years, and the investor has no reliable secondary-sale route or other assets for the payment. Which issue is decisive before considering its projected return?
Option A. The expected return can be used as cash even without a distribution or sale
Why it is wrong: An expected valuation increase is not an available payment source without cash realisation.
Option B. The seven-year horizon makes the one-year payment irrelevant
Why it is wrong: A fund’s long investment horizon does not cancel a separate liability due much earlier.
Option C. The contractual liquidity restriction conflicts with the investor’s payment deadline — Correct answer
Option D. Infrastructure assets make the redemption restriction optional for each investor
Why it is wrong: The facts state an express restriction and provide no individual exemption or assured transfer route.
Answer: C. The investor needs spendable money in one year but has no established way to access the proposed investment then. The payment date is fixed at 12 months, whereas the stipulated no-redemption period is seven years. The question also removes alternative funding and a reliable sale route. Therefore the funding mismatch cannot be dismissed by assuming the units can be sold. Expected performance does not cure unavailable liquidity. These horizons are hypothetical contract terms, not a claim that every infrastructure AIF must use a seven-year restriction. Remember: A required payment must be matched with accessible funding, not merely a favourable return projection.
Hint, shown before you answer in practice mode: Common mistake: Confusing an investment’s estimated future value with cash available when a liability falls due.
X-A-164mediumconceptual
Q5A hypothetical special-situations investment buys a debt claim with face value ₹1 crore for ₹70 lakh. The final cash recovery is ₹60 lakh, with no interest or other receipts. What is the holding-period return on the purchase cost, rounded to two decimal places?
Option A. −40.00%
Why it is wrong: This measures the shortfall from the claim’s face value, not the investor’s return on the acquisition cost.
Option B. +42.86%
Why it is wrong: This assumes recovery of full face value, contrary to the stated final receipt of only ₹60 lakh.
Option C. −14.29% — Correct answer
Option D. −10.00%
Why it is wrong: This divides the ₹10 lakh investment loss by ₹1 crore face value, using the wrong return denominator.
Answer: C. The ₹10 lakh loss is divided by the ₹70 lakh actually invested, producing approximately −14.29%. Cash invested is ₹70 lakh and total cash recovered is ₹60 lakh. The investment therefore loses ₹10 lakh. Holding-period return = (₹60 lakh − ₹70 lakh) / ₹70 lakh × 100 = −14.2857%, rounded to −14.29%. Face value may help describe the contractual claim, but it is neither the investor’s cost nor an assured recovery. No annualisation is possible because a holding duration is not specified. Remember: Calculate distressed-investment returns using acquisition cost and realised recoveries.
Hint, shown before you answer in practice mode: Common mistake: Assuming that purchasing at a discount to face value necessarily creates a gain.
X-A-165mediumnumerical
Q6An investor holds three alternative funds with different managers. Their disclosed portfolios each allocate most assets to the same five property developers in one city. What should a portfolio review recognise?
Option A. Manager-name diversification has not removed the common underlying concentration — Correct answer
Option B. Concentration can be assessed solely from the number of fund units held
Why it is wrong: The number of units says nothing about which assets those units represent or how the risks overlap.
Option C. Three fund names necessarily imply three independent sources of return
Why it is wrong: Names and administrative separation do not establish independent economic exposures.
Option D. Different managers cancel all common property-market exposure
Why it is wrong: Manager selection cannot, by itself, offset investments in the same underlying businesses and market.
Answer: A. The portfolios share issuers, industry and location despite having different managers and fund names. All three funds are exposed to the same small group of developers. Their distinct managers do not change that shared issuer exposure. The common property industry and single city add further sources of correlated outcomes under the facts given. A review should aggregate those exposures before judging diversification. The conclusion does not assert that all alternative funds are concentrated. It follows from these specifically disclosed portfolios. Remember: Count independent sources of risk, not just the number of investment wrappers.
Hint, shown before you answer in practice mode: Common mistake: Treating separate managers as sufficient proof of diversified underlying holdings.
X-A-166mediumconceptual
Q7An investment agreement defines a ₹2 crore commitment as the maximum amount the investor promises to contribute through valid future capital calls. Only ₹50 lakh has been called and paid so far. No amount is recallable and the agreement has not changed. Which statement correctly describes the position?
Option A. The full ₹2 crore has already been invested in the fund
Why it is wrong: A promise to meet future calls is not the same as having transferred the whole amount today.
Option B. The uncalled amount is a gain earned by the fund
Why it is wrong: Uncalled commitment is a remaining contribution obligation, not income or appreciation on existing investments.
Option C. ₹50 lakh has been paid in and ₹1.50 crore remains uncalled — Correct answer
Option D. The investor owes no further amount because the first call was paid
Why it is wrong: Paying one call does not extinguish the uncalled portion of the commitment described in the agreement.
Answer: C. Paid-in capital records contributions already made. The remaining contractual commitment has not yet been called. The contractual commitment is ₹2 crore. The portion actually called and paid is ₹50 lakh. Uncalled commitment = ₹2 crore − ₹50 lakh = ₹1.50 crore. It is a potential future cash requirement, not an asset already transferred to the fund. The investor needs to consider that future funding obligation when managing other liquidity. The scenario excludes recycling and recall provisions that could otherwise complicate the reconciliation. Remember: Track future contribution obligations separately from the amount already invested.
Hint, shown before you answer in practice mode: Common mistake: Recording the full commitment as paid-in capital before the calls are funded.
X-A-167mediumconceptual
Q8A long-short fund has investor equity of ₹100 crore, long positions of ₹140 crore and short positions of ₹60 crore. What are its gross and net exposures, as a share of equity?
Option A. 80% and 200%
Why it is wrong: This reverses the addition-based gross measure and the signed net measure.
Option B. 100% and 0%
Why it is wrong: These assume complete offsetting without applying the actual position amounts supplied.
Option C. 140% and 60%
Why it is wrong: These report the two sides separately rather than calculating gross and net exposure.
Option D. 200% and 80% — Correct answer
Answer: D. Gross exposure adds ₹140 crore and ₹60 crore. Net exposure subtracts ₹60 crore from ₹140 crore. Gross positions = ₹140 crore + ₹60 crore = ₹200 crore. Dividing by ₹100 crore equity gives 200%. Net positions = ₹140 crore − ₹60 crore = ₹80 crore. Dividing by the same equity base gives 80%. Offsetting exposures do not guarantee offsetting profits or losses, because the long and short assets can behave differently. These definitions are an explicit teaching convention, not a calculation of any regulatory leverage ceiling. Remember: Keep signed net exposure separate from the total size of long and short positions.
Hint, shown before you answer in practice mode: Common mistake: Assuming low net exposure would eliminate liquidity, financing or mismatch risks.
X-A-168mediumnumerical
Q9Fund P’s unlisted assets are revalued only quarterly using estimates. Fund Q’s listed assets are marked to daily traded prices. P reports a smoother monthly valuation series. Which inference is most defensible from this fact alone?
Option A. Q must be poorly managed because its reported values change every trading day
Why it is wrong: Frequent price discovery is not, by itself, evidence of poor investment management.
Option B. P’s investments are necessarily safer in every relevant sense because their reported values move less
Why it is wrong: Reported smoothness alone does not establish lower default, liquidity, valuation or market risk.
Option C. The two funds’ volatility figures can be compared directly without examining valuation methods
Why it is wrong: Different observation and valuation methods can make the apparent comparison misleading.
Option D. P’s smoother series may reflect less frequent valuation and does not prove lower economic risk — Correct answer
Answer: D. A smooth reported series may reflect infrequent observations rather than genuinely stable underlying asset values. P’s monthly series contains periods without a fresh asset revaluation. That can make intermediate reported values appear unchanged. Q’s series incorporates daily market information, which may reveal fluctuations that P’s reporting process has not yet recorded. The observation therefore warrants reviewing valuation methods and other risks. It does not establish that P is misvalued, that Q is badly managed, or that either fund is suitable for a particular investor. Remember: Examine how the data were produced before interpreting a volatility comparison.
Hint, shown before you answer in practice mode: Common mistake: Equating infrequent observed price changes with an absence of investment risk.
X-A-169mediumconceptual
Q10A proposed alternative strategy had correlation of 0.10 with a client’s listed portfolio in a historical sample. The adviser’s stress scenario instead assumes correlation of 0.80. What is the appropriate implication for portfolio modelling?
Option A. Evaluate the combined portfolio under both assumptions rather than treating 0.10 as permanent — Correct answer
Option B. Use 0.10 in every future state because it was measured from actual history rather than assumed
Why it is wrong: A past sample does not establish that the same relationship must hold under all future conditions.
Option C. Treat the 0.80 stress correlation as a guaranteed 80% loss on the combined portfolio
Why it is wrong: Correlation describes co-movement, not the size of a portfolio’s realised or guaranteed loss.
Option D. Discard correlation from the model entirely because the two estimates differ so widely
Why it is wrong: Uncertainty in an input supports sensitivity analysis rather than automatically making the concept irrelevant.
Answer: A. The historical estimate and the explicit stress assumption describe different possible co-movement conditions. The 0.10 sample estimate suggests limited linear co-movement in that sample, but does not guarantee a future relationship. The stress assumption of 0.80 represents substantially more positive co-movement. Its effect should be assessed alongside the chosen weights and volatilities. Neither correlation alone determines expected return or a percentage loss. Comparing outcomes under different plausible inputs is more informative than presenting a single estimated number as permanent. Remember: Test whether diversification benefits survive less favourable co-movement assumptions.
Hint, shown before you answer in practice mode: Common mistake: Reading a correlation coefficient as a probability of loss or a guaranteed percentage return.
X-A-170mediumconceptual
Q11CASE: An investor commits ₹2 crore to a fund. The fund calls 40% of the commitment, then another 20% of the original commitment. Both calls are paid. How much has the investor paid in?
Option A. ₹1 crore
Why it is wrong: ₹1 crore does not match the two calls of ₹80 lakh and ₹40 lakh.
Option B. ₹2 crore
Why it is wrong: ₹2 crore is the full commitment, but only 60% has been called.
Option C. ₹1.04 crore
Why it is wrong: This takes 20% of the remaining ₹1.20 crore instead of the original ₹2 crore.
Option D. ₹1.20 crore — Correct answer
Answer: D. Calls = 40% + 20% = 60% of ₹2 crore = ₹1.20 crore. Remember: Use the contract’s specified capital-call base and preserve the distinction between paid-in capital and net cash outflow.
Hint, shown before you answer in practice mode: Common mistake: Applying later call percentages to the remaining balance when the terms specify original commitment.
X-A-171mediumapplication
Q12CASE: An investor committed ₹2 crore and has paid ₹1.20 crore through capital calls. The fund later paid out ₹20 lakh, which does not restore uncalled commitment. How much is still uncalled?
Option A. ₹60 lakh
Why it is wrong: This takes the distribution off the uncalled amount.
Option B. ₹80 lakh — Correct answer
Option C. ₹1 crore
Why it is wrong: This adds the distribution back, which the terms do not allow.
Option D. ₹1.20 crore
Why it is wrong: ₹1.20 crore is the amount paid in, not the amount left.
Answer: B. Uncalled = ₹2 crore − ₹1.20 crore = ₹80 lakh. The distribution does not change it. Remember: Read recall and recycling terms before adjusting uncalled commitments for distributions.
Hint, shown before you answer in practice mode: Common mistake: Assuming a cash distribution automatically creates an equal new contribution obligation.
X-A-172mediumapplication
Q13CASE: An investor has paid ₹1.20 crore into a fund, received a ₹20 lakh cash distribution and holds a remaining interest valued at ₹1.40 crore that cannot yet be sold. ₹80 lakh of commitment is uncalled. How much cash has the investor received from the fund?
Option A. ₹20 lakh — Correct answer
Option B. ₹80 lakh
Why it is wrong: ₹80 lakh is the uncalled commitment, a possible future payment.
Option C. ₹1.40 crore
Why it is wrong: ₹1.40 crore is an estimated value that cannot yet be turned into cash.
Option D. ₹1.60 crore
Why it is wrong: This adds the estimated value to the cash received.
Answer: A. Only the ₹20 lakh distribution has been received as cash. The ₹1.40 crore is an estimate that cannot yet be turned into cash. Remember: Do not fund an immediate payment with a valuation that cannot currently be realised.
Hint, shown before you answer in practice mode: Common mistake: Treating distributed cash, residual investment value and uncalled commitment as interchangeable.
X-A-173easyapplication
Q14CASE: An investor paid ₹1.20 crore into a fund out of a ₹2 crore commitment. The investor has received ₹20 lakh back and holds an interest valued at ₹1.40 crore. What is the total economic gain?
Option A. −₹40 lakh
Why it is wrong: This uses the full ₹2 crore commitment as if it were all paid.
Option B. ₹40 lakh — Correct answer
Option C. ₹20 lakh
Why it is wrong: This leaves out the ₹20 lakh received.
Option D. ₹60 lakh
Why it is wrong: This counts the ₹20 lakh twice.
Answer: B. Gain = ₹20 lakh + ₹1.40 crore − ₹1.20 crore = ₹40 lakh. Remember: Include distributions once and residual value once when reconciling total economic gain.
Hint, shown before you answer in practice mode: Common mistake: Subtracting net contributions after already including distributions on the value side.
X-A-174mediumapplication
Q15CASE: An investor paid ₹1.20 crore into a fund out of a ₹2 crore commitment. The investor has received ₹20 lakh back and holds an interest valued at ₹1.40 crore. What is the total value to paid-in (TVPI) multiple?
Option A. 1.17 times
Why it is wrong: 1.17 times uses only the remaining value and leaves out the cash received.
Option B. 1.60 times
Why it is wrong: 1.60 times divides by ₹1 crore of net cash put in, not the paid-in amount.
Option C. 0.80 times
Why it is wrong: 0.80 times divides by the full ₹2 crore commitment.
Option D. 1.33 times — Correct answer
Answer: D. TVPI = (₹20 lakh + ₹1.40 crore) ÷ ₹1.20 crore = 1.33 times. It is a multiple, not a yearly return. Remember: Use a value multiple for value-versus-capital comparison, not as a substitute for a dated return calculation.
Hint, shown before you answer in practice mode: Common mistake: Annualising a value multiple when cash-flow dates and investment duration are unknown.
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Overview of Alternative Investment Funds (AIFs): common questions
How many practice questions are there on Overview of Alternative Investment Funds (AIFs)?
15 questions, all written out on this page with the correct answer and why each other option is wrong. This unit is one of the 20 practice topics for NISM Series X-A, which has 285 questions in total.
Are these real NISM Series X-A questions on Overview of Alternative Investment Funds (AIFs)?
No. LearnNifty wrote every question from NISM's public syllabus. NISM does not publish its question bank, so nobody can offer you the real paper. Use these questions to check that an idea has gone in. Use the official NISM workbook to see what is examined.
Does negative marking apply to NISM Series X-A?
Yes. NISM takes off 25% of a question's marks for a wrong answer. On a 1 or 2-mark question that is 0.25 or 0.5 marks off. A blank question earns nothing and loses nothing, so a wrong guess costs marks on this paper. Timed practice here uses the same rule.
Are these practice questions kept up to date?
Each question is written against the rules printed on this page, last checked on 5 September 2026. A Budget or a SEBI circular can change a rate, a lot size or an expiry day. If one of those rules changes before your exam, treat the questions that use it as out of date. Then check NISM's current workbook.
Introduction to Modern Portfolio Theory
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