PracticeVideosBlogFlashcardsEspañol
All Practice Exams

100+ Free NISM Series XIX-D Practice Questions

Pass your NISM Series XIX-D: Category I and II Alternative Investment Fund Managers Certification Examination exam on the first try — instant access, no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately
100+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More NISM Certifications (India)

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

NISM Series I Currency Derivatives

Practice Questions

NISM Series II-A Registrars and Transfer Agents (Corporate)

Practice Questions

NISM Series II-B Registrars and Transfer Agents (Mutual Fund)

Practice Questions

NISM Series III-A Securities Intermediaries Compliance (Non-Fund)

Practice Questions

NISM Series III-C Securities Intermediaries Compliance (Fund)

Practice Questions

NISM Series IV Interest Rate Derivatives

Practice Questions
2026 Statistics

Key Facts: NISM Series XIX-D Exam

80

Questions (60 MCQs + 4 Caselets)

NISM

120 min

Exam Duration

NISM

60%

Passing Score

NISM

₹1,500

Exam Fee (plus GST)

NISM 2026

25%

Negative Marking

NISM

3 years

Validity Period

NISM

The NISM Series XIX-D: Category I and II AIF Managers certification requires a passing score of 60% with negative marking of 25%. The 2-hour exam costs Rs. 1,500 plus GST, featuring 80 questions (60 MCQs and 4 caselets) for 100 total marks.

Sample NISM Series XIX-D Practice Questions

Try these sample questions to test your NISM Series XIX-D exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following best describes the core difference between investment and speculation?
A.Investment involves high risk with short-term return expectations, whereas speculation is always long-term.
B.Investment is based on thorough analysis, safety of principal, and a reasonable return, while speculation is based on market rumors and price movements.
C.Investment relies strictly on derivatives and leverage, while speculation relies only on cash-and-carry markets.
D.Investment is done only by retail clients, whereas speculation is restricted to institutional funds.
Explanation: According to investment fundamentals (and Benjamin Graham's definition), an investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.
2An investor estimates that a risk-free bond yields 7% per annum. The equity market risk premium is 6%, and a growth stock has a beta of 1.4. What is the required rate of return for the growth stock using the Capital Asset Pricing Model (CAPM)?
A.13.0%
B.15.4%
C.14.4%
D.11.8%
Explanation: Using CAPM: Required Return = Risk-Free Rate + Beta * (Market Risk Premium) = 7% + 1.4 * 6% = 7% + 8.4% = 15.4%.
3Which of the following is considered a 'systematic risk' that cannot be diversified away in a portfolio of Indian equities?
A.The labor strike in a major automobile company.
B.A surprise interest rate hike by the Reserve Bank of India (RBI).
C.Product recall by a leading pharmaceutical manufacturer.
D.Default of a single corporate bond held in the portfolio.
Explanation: Systematic risk affects the entire market or economy and cannot be eliminated through diversification. RBI interest rate changes are macroeconomic events affecting all companies, whereas labor strikes, product recalls, and company defaults are unsystematic risks unique to specific firms.
4Which of the following alternative asset classes is most likely to exhibit a negative correlation with traditional equity markets during a severe macroeconomic downturn?
A.Growth Venture Capital.
B.Leveraged Buyout Funds.
C.Physical Gold and Precious Metals.
D.Publicly traded small-cap stocks.
Explanation: Gold acts as a safe haven asset and typically exhibits negative correlation or low correlation with equity markets during crises. Venture Capital and Buyouts are equity-linked assets and suffer valuation declines, while small-cap stocks are highly correlated with general equities.
5What is the primary risk associated with direct investments in infrastructure assets relative to listed equities?
A.Extremely high liquidity enabling rapid entry and exit.
B.Illiquidity risk due to long gestation periods and lack of an active secondary trading market.
C.Complete exemption from all regulatory and state clearances.
D.Zero inflation sensitivity due to fixed pricing of public services.
Explanation: Infrastructure investments are highly illiquid, requiring massive capital upfront with very long payback periods (gestation periods) and no active public market to sell ownership stakes quickly.
6An investor allocates ₹10,00,000 to a hedge fund. The fund reports a gross yield of 18% in Year 1. The manager charges a 2% management fee on the initial investment and a 20% performance fee (with no hurdle rate) on the gross return. What is the net return to the investor?
A.₹1,24,000
B.₹1,26,000
C.₹1,28,000
D.₹1,30,000
Explanation: Gross profit = 18% of ₹10,00,000 = ₹1,80,000. Management Fee = 2% of ₹10,00,000 = ₹20,000. Performance Fee = 20% of gross return = 20% of ₹1,80,000 = ₹36,000. Net profit = Gross profit - Management Fee - Performance Fee = ₹1,80,000 - ₹20,000 - ₹36,000 = ₹1,24,000.
7Which investment channel provides institutional investors with direct co-investment opportunities alongside AIFs, rather than investing as a Limited Partner?
A.Mutual Fund Schemes.
B.Co-investment portfolio accounts managed by the AIF Manager.
C.Qualified Foreign Investor public routes.
D.Retail Infrastructure Investment Trusts.
Explanation: Co-investment is an investment made by a Limited Partner (or institutional investor) directly into a portfolio company alongside the main AIF. SEBI permits co-investments through a separate portfolio management account or direct co-investment structures managed by the AIF manager.
8Why do alternative investments generally command a 'liquidity premium' over listed public securities?
A.Because they can be liquidated instantly on stock exchanges.
B.To compensate investors for locking up their capital in illiquid, unlisted assets for long durations.
C.Because they are guaranteed by SEBI to never fall in value.
D.Because their transactional cost is lower than public market brokerages.
Explanation: Since alternative investments (like private equity and venture capital) are illiquid and require long-term lock-up of funds, investors demand a higher expected return—known as the liquidity premium—to compensate for the inability to sell their holdings quickly.
9In portfolio construction, how does the inclusion of private real estate assets affect the efficient frontier?
A.It shifts the efficient frontier downward, decreasing return for every level of risk.
B.It expands the efficient frontier upward and outward, improving the risk-adjusted return profile due to low correlation with equities.
C.It has absolutely no effect, as real estate behaves exactly like large-cap listed equities.
D.It collapses the efficient frontier into a single riskless point.
Explanation: Due to low correlation with listed equities and bonds, adding private real estate to a traditional portfolio shifts the efficient frontier upward and to the left, allowing for higher portfolio diversification and better risk-adjusted returns (Sharpe ratio).
10Under modern portfolio theory, which component of total risk is eliminated when an investor constructs an optimal well-diversified portfolio?
A.Market Risk.
B.Unsystematic Risk.
C.Systematic Risk.
D.Inflation Risk.
Explanation: Diversification eliminates unsystematic risk (also called specific or idiosyncratic risk) because the firm-specific events of different companies offset each other. Systematic risk (market-wide risk) cannot be diversified away.

About the NISM Series XIX-D Exam

The NISM Series XIX-D: Category I and II Alternative Investment Fund Managers Certification Examination is a professional benchmark designed for key investment team members and fund managers of Venture Capital, Private Equity, Debt, and Social Venture AIFs in India. It tests key competencies in portfolio structuring, valuation methodologies, compliance operations, pass-through taxation, fee calculation, and SEBI regulations.

Assessment

80 questions in total: 60 multiple-choice questions of 1 mark each and 4 caselets with 5 sub-questions of 2 marks each, totalling 100 marks.

Time Limit

2 hours (120 minutes)

Passing Score

60% (60 out of 100 marks). Negative marking of 25% of the marks assigned to a question applies for each wrong answer.

Exam Fee

Rs. 1,500 (plus applicable payment gateway charges and GST). (National Institute of Securities Markets (NISM), established by SEBI.)

NISM Series XIX-D Exam Content Outline

10%

Basics of Investments and Alternative Investment Landscape

Investment vs. speculation, objectives, risk-return tradeoffs, and roles of traditional vs. alternative investments.

35%

AIF Ecosystem, Structuring, and Economics

Constitutions, pooling principles, service providers, fee structures (management/incentive fees), and performance/risk benchmarking.

30%

Legal Documentation, Strategies, and Due Diligence

PPM, Trust Deeds, Subscription Agreements, VC/PE equity strategies, deal sourcing, due diligence, and conflict governance.

10%

Valuation of Portfolio Assets

Valuation guidelines (IPEV), NAV calculation rules, role of third-party Registered Valuers, and valuation techniques.

15%

Taxation, Regulatory Framework, and Compliance

Section 115UB pass-through taxation, FEMA downstream rules, SEBI (AIF) Regulations, excuse-exclusion rules, and key obligations.

How to Pass the NISM Series XIX-D Exam

What You Need to Know

  • Passing score: 60% (60 out of 100 marks). Negative marking of 25% of the marks assigned to a question applies for each wrong answer.
  • Assessment: 80 questions in total: 60 multiple-choice questions of 1 mark each and 4 caselets with 5 sub-questions of 2 marks each, totalling 100 marks.
  • Time limit: 2 hours (120 minutes)
  • Exam fee: Rs. 1,500 (plus applicable payment gateway charges and GST).

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

NISM Series XIX-D Study Tips from Top Performers

1Study management fee calculations based on committed capital versus invested capital, including GST impacts.
2Understand European (whole fund) and American (deal-by-deal) carry waterfall mechanisms, hurdle rates, and catch-up options.
3Review unlisted equity valuation techniques, including Discounted Cash Flow (DCF), market multiples, and the IPEV guidelines.
4Master the tax pass-through mechanics of Category I and II AIFs under Section 115UB of the Income Tax Act.
5Know SEBI rules on excuse and exclusion of investors, borrowing restrictions, and downstream FDI limitations under FEMA rules.

Frequently Asked Questions

What is the NISM Series XIX-D certification?

It is a mandatory certification for key investment personnel of Category I and II Alternative Investment Funds (AIFs) registered with SEBI. It ensures fund managers and key team members possess adequate knowledge of AIF operations, structuring, fee waterfalls, valuation, and regulatory obligations.

What is the structure of the NISM Series XIX-D exam?

The exam consists of 80 questions to be completed in 2 hours. This includes 60 standalone multiple-choice questions of 1 mark each and 4 case-based scenarios (caselets) with 5 MCQs of 2 marks each, totaling 100 marks. The passing score is 60% (60 marks).

Is there negative marking in this exam?

Yes, there is negative marking of 25% of the assigned marks for each incorrect answer. That means a deduction of 0.25 marks for a wrong standalone MCQ (1 mark) and 0.50 marks for a wrong caselet question (2 marks).

How much does the NISM Series XIX-D registration cost?

The registration fee is ₹1,500 plus applicable GST. This fee includes access to the soft copy of the official NISM workbook upon successful registration.

What is the validity of the NISM Series XIX-D certification?

The certification is valid for 3 years from the date of passing the exam. To renew the certification, candidates must re-register and pass the exam again or complete the mandated Continuing Professional Education (CPE) program if applicable.