Alternative Investment Fund (AIF) Mock Quiz -1

Alternate Investment is defined as a ______________-that doesnot fall into one of the conventional investment categories

Mutual Fund
Financial Asset
Personal Finance
Financial Planning

The due delligence review is conducted by _____________

The trustee of the AIF
The Auditor of the AIF
An agency appointed by the AIF
An Investment bank appointed by the AIF

A key component of the Investor presentation for Cat I or II AIF is ____________

The credit rating of the fund
The credit rating of the instrument for subscription
Key Appointees, fund structure, fee structure and Governace mechanism
the financial arrangement to leverage at the fund level

The term sheet is entered into by __________

the manager with a the potential investee company
the sponsor with the investor
the fund with the manager
the distributor with the investor

The Investment objective of an AIF refers to the __________

reporting requirements
Target TVPI
Investee Ocmpany performance
Identification of Investment Oppurtunities & Approach

One of the key provision of a Distributor agreement is ______________

The role of the distributor in the inevstment strategy
the quantum of risks to be assumed by the AIF
the applicability of the SEBI AIF Regulation 2012 to the fund
The commercial understanding with the distributor for distributing the fund withpotential investors.

The following income is taxed at the fund level for an AIF.

Capital Gain
Business Income
Income from House and propoerty
Income from other sources

Relative Valuation measures consists of ________

Evaluating using multiple of established parametres
Valuation using P/E Ratio
Finding the comparable cash flows
Discounting the relative Cash flows

Under SEBI AIF 2012 regulations, annual reporting to Investors by an AIF shall be ___________-

towards the end of the fund tenure
after the final clos
within 180 days from the close of the financial year
within 90 days from the date of balance sheet.

One of the criterion to evaluate a fund manager is _________________

economic risks associated with the fund
the timings of the cash flows
the prior performance track record of the fund and the manager
The genral investment climate within the country

Which of the following trust structure is suitable for AIF in India?

Public Charitable Trust
Limited Liability Trust
Partnership trust
Determinate Trust

Which of the following is the minimum stipulated amount required by the investor in AIF scheme?

1 Crore
25 lakhs
5 Crore
20 Crore

One of the key disclosure in a PPM is ____________

The amount of Investment to be made by the investor
the management fee structure
the details of the asset securities
the minimum guaranteed return

The following is the most common structure adopted for domestic AIF in India

Company
Partnership
Trust
NBFC

One of the Key risks in an Investment in AIF is _________

the risks of capital Adequacy
the risks of inadequate provisioning against NPAs
Illiquidity risks
the risk of inadequate security creation

Investment fund under the Income tax Act 1961 refers to the ___________

an Investment company registered with SEBI
Cat I & II AIF registered with SEBI
a category III AIF registered with SEBi
A company regsiteerd as NBFC with RBI

A fund that provide both equity and unsecured debt financiang to early stage start-ups would classify as which of the following?

Ventre Capital fund
Unsecured Bnd fund
NBFC
Portfolio Management Services (PMS)

An allignment if interest is is required between

AIF and its auditors
the AIF managers and its Investors
the AIF and its subsidiaries
the LLP and the trust

An AIF that aims ot invest in listed securities and the derivatives and other complex trading stargies is categorised as __________

Cat I
Cat II
Cat III
All of the Above

Which of the following is the eligible condition for being the sponsor of the AIF?

A person who is convivted under criminal offense but awating judicial sentencing
Person with an unsound ind and undergoing treatment
A Person who is insolvent and awaiting to file bankruptcy
Fit and Proper person as detrmined by SEBI

What is the minimum contribution requirement to start an AIF under Cat I & II?

20 crores
100 Crores
50 Crores
5 Corres

The minim number if clients allowed in an AIF is ___________

No limit
1000
49
500

The following category of the investor is not suitable for uinvestment in AIF?

an Individual less than 60 years of age
Investor with no risks taking abilities
Member of an HUF
Partners of a firm

Break up value of share is arrived at using ___________-

Asset and Liabilites at the book value
Asset and Liabilites at the replacement Valaue
Asset and Liabilities at the Liquidation Value
Net asset at the book Value

The fund has to maintain records relating to

all material contract of the investee companies
Valuation policy and practises used in managing the AIF
Monetary policy adopted by the RBI
effective rate f the return

A Fund has a PIC of 0.90 means __________–

The fund is about to close its funding round
that it has only 10% NPA level
that the fund has a 90% recovery rate on the investment
that it has drawdown most of the capital comittments

The following tes of income will most likely be taxed as Income from Other Sources for a category III AIF, except ______________-

Dividend Income
Interest Income
Income from transaction in Exchange traded Derivatives
Deemed income on Investment on Shares below its Fair Market Value under section 56(2) (x) of the Income tax Act 1961

An AIF is liable to deduct at the rate of _________%, at the time of credit or at the time of payment of such income , whichever is earlier to the account of a resident investor

0.05
0.1
0.2
0.3

As per the SEBI regulations, all the Cat I & II AIF are supposed to disclose the details of the find investment objective, fund structure Investment methodology to the potential investor in their _____________

Private Placement Memorandum (PPM)
Private Placement Manager (PPM)
Primary Placement Memorandum (PPM)
Private Placement manager (PPM)

In Cat I & II AIF, Distributor may also assist in completing the KYC Documentation and verification process. State whether TRUE or FALSE

True
False

The inevstment manager shall clearly disclose the vauation method adopted by the fund for the valuation of illiquid securities approved by a __________

Investment Sponsor
Investor / Client
Registered Valuer
Registered Distrihutor

The ______________ is the thresh hold return iver which the Investent manager will be eligible to earn incentives fees

Preffered Return
Incentive Fees
Hurdle Rate
Set-up Costs

The minimum amount for investment in Angel fund is __________-

1 Crore
50 lakhs
25 Lakhs
10 Lakhs

The ________________ includes a Principal Purpose tests wherein tax benefits under a Double Taxation Avoidance Agreement (DTAA) can be denied if one of the purpose n arrangement or a transaction was to directly or indirectly obtain tax benefit.

MIL
DRAC
DAC
MLI

Complex fund structuring is requiredwhich makes it difficult for investors to comprehend in Alternate Investment. State true or False

True
False

Investment in listed Debt issued by both listed and Unlisted companies are considered as ______________

Alternate Investment
Dual Investment
Traditiona Investment
none of the Above

The distributor agreement is either Bi-partite or Tri-Partite

True
False

Asset Allocator in Institutional investment classes should not miss out on ____________

Improved Diversification
First Mover Return
Last exit return
Only 1 & 2

Benchmarking shall not apply to the angel fund registered under sub category of Venture Capital fund under ______________—-

Cat I – AIF
Cat II – AIF
Cat III – AIF
None of the abve

______________ are subject to high mortality risks, these funds assume higher risks seeking higher return.

Early Stage Ventures
Late Stage Venture
Social venture Funds
Public Funds

All borroiwng that rank less than secured debt with first stage are called ____________________

Senior Debt
Sub-Ordinate Debt
Venture Debt
Mezzanine Debt

Many types of debt that are private and are considered Alternate Investment because they are _______________

Illiquid
Not commonly held by traditiona Investor
Only Alternate of debt Funds
Both 1 & 2

The Hurdle rate in AIF ecosystem particularly refers to preffered return in ________________-

Hedge Funds
Venture Capital
Private Equity
Only 1 & 2

Any ofi the AIF oppurtunites sourced through the internal sources is reffered to as _____________—

Public Sourcing
Private Sourcing
Proprietory Sourcing
Team Sourcing

The WACC (Weighted Average Cost of Capital) will be based on the ____________ of the Company

Equity & Debt ratio
Asset Turn Over Ratio
Current ratio
Debt Coverage Ratio

Both FVCI and AIF regulation f SEBI are applicable to ______________

Parallel Structure
offshore Structure
Unfied Structure
Domestic Structure

In a prtnership structure, the _________________–are also partners along with the Investors in the fund.

Trustee
Custodian
Investment manager
All of the Above

The first drawdown is made by the Investment manager is done after the ______________ of the fund.

First Opening
First Closing
Consecutive Closing
Consecutive Ending

In _____________ , investors tends to Value immediate performance and have an outlook on the future.

Hedge Funds
Angel Fund
Venture capital
Private Equity

The Private Placement Memorandum (PPM) shall be filed with the SEBI atleast ____________ days prior to the launch of the scheme.

15 Days
7 Days
30 Days
45 days

The fund structure purely as PRIVATE DEBT FUND also qualify under the Cat ______ AIF

Cat I
Cat II
Cat III
Any of the Above

Alternate Investment is defined as a ______________-that doesnot fall into one of the conventional investment categories

Mutual Fund
Financial Asset
Personal Finance
Financial Planning

The due delligence review is conducted by _____________

The trustee of the AIF
The Auditor of the AIF
An agency appointed by the AIF
An Investment bank appointed by the AIF

A key component of the Investor presentation for Cat I or II AIF is ____________

The credit rating of the fund
The credit rating of the instrument for subscription
Key Appointees, fund structure, fee structure and Governace mechanism
the financial arrangement to leverage at the fund level

The term sheet is entered into by __________

the manager with a the potential investee company
the sponsor with the investor
the fund with the manager
the distributor with the investor

The Investment objective of an AIF refers to the __________

reporting requirements
Target TVPI
Investee Ocmpany performance
Identification of Investment Oppurtunities & Approach

One of the key provision of a Distributor agreement is ______________

The role of the distributor in the inevstment strategy
the quantum of risks to be assumed by the AIF
the applicability of the SEBI AIF Regulation 2012 to the fund
The commercial understanding with the distributor for distributing the fund withpotential investors.

The following income is taxed at the fund level for an AIF.

Capital Gain
Business Income
Income from House and propoerty
Income from other sources

Relative Valuation measures consists of ________

Evaluating using multiple of established parametres
Valuation using P/E Ratio
Finding the comparable cash flows
Discounting the relative Cash flows

Under SEBI AIF 2012 regulations, annual reporting to Investors by an AIF shall be ___________-

towards the end of the fund tenure
after the final clos
within 180 days from the close of the financial year
within 90 days from the date of balance sheet.

One of the criterion to evaluate a fund manager is _________________

economic risks associated with the fund
the timings of the cash flows
the prior performance track record of the fund and the manager
The genral investment climate within the country

Which of the following trust structure is suitable for AIF in India?

Public Charitable Trust
Limited Liability Trust
Partnership trust
Determinate Trust

Which of the following is the minimum stipulated amount required by the investor in AIF scheme?

1 Crore
25 lakhs
5 Crore
20 Crore

One of the key disclosure in a PPM is ____________

The amount of Investment to be made by the investor
the management fee structure
the details of the asset securities
the minimum guaranteed return

The following is the most common structure adopted for domestic AIF in India

Company
Partnership
Trust
NBFC

One of the Key risks in an Investment in AIF is _________

the risks of capital Adequacy
the risks of inadequate provisioning against NPAs
Illiquidity risks
the risk of inadequate security creation

Investment fund under the Income tax Act 1961 refers to the ___________

an Investment company registered with SEBI
Cat I & II AIF registered with SEBI
a category III AIF registered with SEBi
A company regsiteerd as NBFC with RBI

A fund that provide both equity and unsecured debt financiang to early stage start-ups would classify as which of the following?

Ventre Capital fund
Unsecured Bnd fund
NBFC
Portfolio Management Services (PMS)

An allignment if interest is is required between

AIF and its auditors
the AIF managers and its Investors
the AIF and its subsidiaries
the LLP and the trust

An AIF that aims ot invest in listed securities and the derivatives and other complex trading stargies is categorised as __________

Cat I
Cat II
Cat III
All of the Above

Which of the following is the eligible condition for being the sponsor of the AIF?

A person who is convivted under criminal offense but awating judicial sentencing
Person with an unsound ind and undergoing treatment
A Person who is insolvent and awaiting to file bankruptcy
Fit and Proper person as detrmined by SEBI

What is the minimum contribution requirement to start an AIF under Cat I & II?

20 crores
100 Crores
50 Crores
5 Corres

The minim number if clients allowed in an AIF is ___________

No limit
1000
49
500

The following category of the investor is not suitable for uinvestment in AIF?

an Individual less than 60 years of age
Investor with no risks taking abilities
Member of an HUF
Partners of a firm

Break up value of share is arrived at using ___________-

Asset and Liabilites at the book value
Asset and Liabilites at the replacement Valaue
Asset and Liabilities at the Liquidation Value
Net asset at the book Value

The fund has to maintain records relating to

all material contract of the investee companies
Valuation policy and practises used in managing the AIF
Monetary policy adopted by the RBI
effective rate f the return

A Fund has a PIC of 0.90 means __________–

The fund is about to close its funding round
that it has only 10% NPA level
that the fund has a 90% recovery rate on the investment
that it has drawdown most of the capital comittments

The following tes of income will most likely be taxed as Income from Other Sources for a category III AIF, except ______________-

Dividend Income
Interest Income
Income from transaction in Exchange traded Derivatives
Deemed income on Investment on Shares below its Fair Market Value under section 56(2) (x) of the Income tax Act 1961

An AIF is liable to deduct at the rate of _________%, at the time of credit or at the time of payment of such income , whichever is earlier to the account of a resident investor

0.05
0.1
0.2
0.3

As per the SEBI regulations, all the Cat I & II AIF are supposed to disclose the details of the find investment objective, fund structure Investment methodology to the potential investor in their _____________

Private Placement Memorandum (PPM)
Private Placement Manager (PPM)
Primary Placement Memorandum (PPM)
Private Placement manager (PPM)

In Cat I & II AIF, Distributor may also assist in completing the KYC Documentation and verification process. State whether TRUE or FALSE

True
False

The inevstment manager shall clearly disclose the vauation method adopted by the fund for the valuation of illiquid securities approved by a __________

Investment Sponsor
Investor / Client
Registered Valuer
Registered Distrihutor

The ______________ is the thresh hold return iver which the Investent manager will be eligible to earn incentives fees

Preffered Return
Incentive Fees
Hurdle Rate
Set-up Costs

The minimum amount for investment in Angel fund is __________-

1 Crore
50 lakhs
25 Lakhs
10 Lakhs

The ________________ includes a Principal Purpose tests wherein tax benefits under a Double Taxation Avoidance Agreement (DTAA) can be denied if one of the purpose n arrangement or a transaction was to directly or indirectly obtain tax benefit.

MIL
DRAC
DAC
MLI

Complex fund structuring is requiredwhich makes it difficult for investors to comprehend in Alternate Investment. State true or False

True
False

Investment in listed Debt issued by both listed and Unlisted companies are considered as ______________

Alternate Investment
Dual Investment
Traditiona Investment
none of the Above

The distributor agreement is either Bi-partite or Tri-Partite

True
False

Asset Allocator in Institutional investment classes should not miss out on ____________

Improved Diversification
First Mover Return
Last exit return
Only 1 & 2

Benchmarking shall not apply to the angel fund registered under sub category of Venture Capital fund under ______________—-

Cat I – AIF
Cat II – AIF
Cat III – AIF
None of the abve

______________ are subject to high mortality risks, these funds assume higher risks seeking higher return.

Early Stage Ventures
Late Stage Venture
Social venture Funds
Public Funds

All borroiwng that rank less than secured debt with first stage are called ____________________

Senior Debt
Sub-Ordinate Debt
Venture Debt
Mezzanine Debt

Many types of debt that are private and are considered Alternate Investment because they are _______________

Illiquid
Not commonly held by traditiona Investor
Only Alternate of debt Funds
Both 1 & 2

The Hurdle rate in AIF ecosystem particularly refers to preffered return in ________________-

Hedge Funds
Venture Capital
Private Equity
Only 1 & 2

Any ofi the AIF oppurtunites sourced through the internal sources is reffered to as _____________—

Public Sourcing
Private Sourcing
Proprietory Sourcing
Team Sourcing

The WACC (Weighted Average Cost of Capital) will be based on the ____________ of the Company

Equity & Debt ratio
Asset Turn Over Ratio
Current ratio
Debt Coverage Ratio

Both FVCI and AIF regulation f SEBI are applicable to ______________

Parallel Structure
offshore Structure
Unfied Structure
Domestic Structure

In a prtnership structure, the _________________–are also partners along with the Investors in the fund.

Trustee
Custodian
Investment manager
All of the Above

The first drawdown is made by the Investment manager is done after the ______________ of the fund.

First Opening
First Closing
Consecutive Closing
Consecutive Ending

In _____________ , investors tends to Value immediate performance and have an outlook on the future.

Hedge Funds
Angel Fund
Venture capital
Private Equity

The Private Placement Memorandum (PPM) shall be filed with the SEBI atleast ____________ days prior to the launch of the scheme.

15 Days
7 Days
30 Days
45 days

The fund structure purely as PRIVATE DEBT FUND also qualify under the Cat ______ AIF

Cat I
Cat II
Cat III
Any of the Above

Alternate Investment is defined as a ______________-that doesnot fall into one of the conventional investment categories

Mutual Fund
Financial Asset
Personal Finance
Financial Planning

The due delligence review is conducted by _____________

The trustee of the AIF
The Auditor of the AIF
An agency appointed by the AIF
An Investment bank appointed by the AIF

A key component of the Investor presentation for Cat I or II AIF is ____________

The credit rating of the fund
The credit rating of the instrument for subscription
Key Appointees, fund structure, fee structure and Governace mechanism
the financial arrangement to leverage at the fund level

The term sheet is entered into by __________

the manager with a the potential investee company
the sponsor with the investor
the fund with the manager
the distributor with the investor

The Investment objective of an AIF refers to the __________

reporting requirements
Target TVPI
Investee Ocmpany performance
Identification of Investment Oppurtunities & Approach

One of the key provision of a Distributor agreement is ______________

The role of the distributor in the inevstment strategy
the quantum of risks to be assumed by the AIF
the applicability of the SEBI AIF Regulation 2012 to the fund
The commercial understanding with the distributor for distributing the fund withpotential investors.

The following income is taxed at the fund level for an AIF.

Capital Gain
Business Income
Income from House and propoerty
Income from other sources

Relative Valuation measures consists of ________

Evaluating using multiple of established parametres
Valuation using P/E Ratio
Finding the comparable cash flows
Discounting the relative Cash flows

Under SEBI AIF 2012 regulations, annual reporting to Investors by an AIF shall be ___________-

towards the end of the fund tenure
after the final clos
within 180 days from the close of the financial year
within 90 days from the date of balance sheet.

One of the criterion to evaluate a fund manager is _________________

economic risks associated with the fund
the timings of the cash flows
the prior performance track record of the fund and the manager
The genral investment climate within the country

Which of the following trust structure is suitable for AIF in India?

Public Charitable Trust
Limited Liability Trust
Partnership trust
Determinate Trust

Which of the following is the minimum stipulated amount required by the investor in AIF scheme?

1 Crore
25 lakhs
5 Crore
20 Crore

One of the key disclosure in a PPM is ____________

The amount of Investment to be made by the investor
the management fee structure
the details of the asset securities
the minimum guaranteed return

The following is the most common structure adopted for domestic AIF in India

Company
Partnership
Trust
NBFC

One of the Key risks in an Investment in AIF is _________

the risks of capital Adequacy
the risks of inadequate provisioning against NPAs
Illiquidity risks
the risk of inadequate security creation

Investment fund under the Income tax Act 1961 refers to the ___________

an Investment company registered with SEBI
Cat I & II AIF registered with SEBI
a category III AIF registered with SEBi
A company regsiteerd as NBFC with RBI

A fund that provide both equity and unsecured debt financiang to early stage start-ups would classify as which of the following?

Ventre Capital fund
Unsecured Bnd fund
NBFC
Portfolio Management Services (PMS)

An allignment if interest is is required between

AIF and its auditors
the AIF managers and its Investors
the AIF and its subsidiaries
the LLP and the trust

An AIF that aims ot invest in listed securities and the derivatives and other complex trading stargies is categorised as __________

Cat I
Cat II
Cat III
All of the Above

Which of the following is the eligible condition for being the sponsor of the AIF?

A person who is convivted under criminal offense but awating judicial sentencing
Person with an unsound ind and undergoing treatment
A Person who is insolvent and awaiting to file bankruptcy
Fit and Proper person as detrmined by SEBI

What is the minimum contribution requirement to start an AIF under Cat I & II?

20 crores
100 Crores
50 Crores
5 Corres

The minim number if clients allowed in an AIF is ___________

No limit
1000
49
500

The following category of the investor is not suitable for uinvestment in AIF?

an Individual less than 60 years of age
Investor with no risks taking abilities
Member of an HUF
Partners of a firm

Break up value of share is arrived at using ___________-

Asset and Liabilites at the book value
Asset and Liabilites at the replacement Valaue
Asset and Liabilities at the Liquidation Value
Net asset at the book Value

The fund has to maintain records relating to

all material contract of the investee companies
Valuation policy and practises used in managing the AIF
Monetary policy adopted by the RBI
effective rate f the return

A Fund has a PIC of 0.90 means __________–

The fund is about to close its funding round
that it has only 10% NPA level
that the fund has a 90% recovery rate on the investment
that it has drawdown most of the capital comittments

The following tes of income will most likely be taxed as Income from Other Sources for a category III AIF, except ______________-

Dividend Income
Interest Income
Income from transaction in Exchange traded Derivatives
Deemed income on Investment on Shares below its Fair Market Value under section 56(2) (x) of the Income tax Act 1961

An AIF is liable to deduct at the rate of _________%, at the time of credit or at the time of payment of such income , whichever is earlier to the account of a resident investor

0.05
0.1
0.2
0.3

As per the SEBI regulations, all the Cat I & II AIF are supposed to disclose the details of the find investment objective, fund structure Investment methodology to the potential investor in their _____________

Private Placement Memorandum (PPM)
Private Placement Manager (PPM)
Primary Placement Memorandum (PPM)
Private Placement manager (PPM)

In Cat I & II AIF, Distributor may also assist in completing the KYC Documentation and verification process. State whether TRUE or FALSE

True
False

The inevstment manager shall clearly disclose the vauation method adopted by the fund for the valuation of illiquid securities approved by a __________

Investment Sponsor
Investor / Client
Registered Valuer
Registered Distrihutor

The ______________ is the thresh hold return iver which the Investent manager will be eligible to earn incentives fees

Preffered Return
Incentive Fees
Hurdle Rate
Set-up Costs

The minimum amount for investment in Angel fund is __________-

1 Crore
50 lakhs
25 Lakhs
10 Lakhs

The ________________ includes a Principal Purpose tests wherein tax benefits under a Double Taxation Avoidance Agreement (DTAA) can be denied if one of the purpose n arrangement or a transaction was to directly or indirectly obtain tax benefit.

MIL
DRAC
DAC
MLI

Complex fund structuring is requiredwhich makes it difficult for investors to comprehend in Alternate Investment. State true or False

True
False

Investment in listed Debt issued by both listed and Unlisted companies are considered as ______________

Alternate Investment
Dual Investment
Traditiona Investment
none of the Above

The distributor agreement is either Bi-partite or Tri-Partite

True
False

Asset Allocator in Institutional investment classes should not miss out on ____________

Improved Diversification
First Mover Return
Last exit return
Only 1 & 2

Benchmarking shall not apply to the angel fund registered under sub category of Venture Capital fund under ______________—-

Cat I – AIF
Cat II – AIF
Cat III – AIF
None of the abve

______________ are subject to high mortality risks, these funds assume higher risks seeking higher return.

Early Stage Ventures
Late Stage Venture
Social venture Funds
Public Funds

All borroiwng that rank less than secured debt with first stage are called ____________________

Senior Debt
Sub-Ordinate Debt
Venture Debt
Mezzanine Debt

Many types of debt that are private and are considered Alternate Investment because they are _______________

Illiquid
Not commonly held by traditiona Investor
Only Alternate of debt Funds
Both 1 & 2

The Hurdle rate in AIF ecosystem particularly refers to preffered return in ________________-

Hedge Funds
Venture Capital
Private Equity
Only 1 & 2

Any ofi the AIF oppurtunites sourced through the internal sources is reffered to as _____________—

Public Sourcing
Private Sourcing
Proprietory Sourcing
Team Sourcing

The WACC (Weighted Average Cost of Capital) will be based on the ____________ of the Company

Equity & Debt ratio
Asset Turn Over Ratio
Current ratio
Debt Coverage Ratio

Both FVCI and AIF regulation f SEBI are applicable to ______________

Parallel Structure
offshore Structure
Unfied Structure
Domestic Structure

In a prtnership structure, the _________________–are also partners along with the Investors in the fund.

Trustee
Custodian
Investment manager
All of the Above

The first drawdown is made by the Investment manager is done after the ______________ of the fund.

First Opening
First Closing
Consecutive Closing
Consecutive Ending

In _____________ , investors tends to Value immediate performance and have an outlook on the future.

Hedge Funds
Angel Fund
Venture capital
Private Equity

The Private Placement Memorandum (PPM) shall be filed with the SEBI atleast ____________ days prior to the launch of the scheme.

15 Days
7 Days
30 Days
45 days

The fund structure purely as PRIVATE DEBT FUND also qualify under the Cat ______ AIF

Cat I
Cat II
Cat III
Any of the Above

Alternate Investment is defined as a ______________-that doesnot fall into one of the conventional investment categories

Mutual Fund
Financial Asset
Personal Finance
Financial Planning

The due delligence review is conducted by _____________

The trustee of the AIF
The Auditor of the AIF
An agency appointed by the AIF
An Investment bank appointed by the AIF

A key component of the Investor presentation for Cat I or II AIF is ____________

The credit rating of the fund
The credit rating of the instrument for subscription
Key Appointees, fund structure, fee structure and Governace mechanism
the financial arrangement to leverage at the fund level

The term sheet is entered into by __________

the manager with a the potential investee company
the sponsor with the investor
the fund with the manager
the distributor with the investor

The Investment objective of an AIF refers to the __________

reporting requirements
Target TVPI
Investee Ocmpany performance
Identification of Investment Oppurtunities & Approach

One of the key provision of a Distributor agreement is ______________

The role of the distributor in the inevstment strategy
the quantum of risks to be assumed by the AIF
the applicability of the SEBI AIF Regulation 2012 to the fund
The commercial understanding with the distributor for distributing the fund withpotential investors.

The following income is taxed at the fund level for an AIF.

Capital Gain
Business Income
Income from House and propoerty
Income from other sources

Relative Valuation measures consists of ________

Evaluating using multiple of established parametres
Valuation using P/E Ratio
Finding the comparable cash flows
Discounting the relative Cash flows

Under SEBI AIF 2012 regulations, annual reporting to Investors by an AIF shall be ___________-

towards the end of the fund tenure
after the final clos
within 180 days from the close of the financial year
within 90 days from the date of balance sheet.

One of the criterion to evaluate a fund manager is _________________

economic risks associated with the fund
the timings of the cash flows
the prior performance track record of the fund and the manager
The genral investment climate within the country

Which of the following trust structure is suitable for AIF in India?

Public Charitable Trust
Limited Liability Trust
Partnership trust
Determinate Trust

Which of the following is the minimum stipulated amount required by the investor in AIF scheme?

1 Crore
25 lakhs
5 Crore
20 Crore

One of the key disclosure in a PPM is ____________

The amount of Investment to be made by the investor
the management fee structure
the details of the asset securities
the minimum guaranteed return

The following is the most common structure adopted for domestic AIF in India

Company
Partnership
Trust
NBFC

One of the Key risks in an Investment in AIF is _________

the risks of capital Adequacy
the risks of inadequate provisioning against NPAs
Illiquidity risks
the risk of inadequate security creation

Investment fund under the Income tax Act 1961 refers to the ___________

an Investment company registered with SEBI
Cat I & II AIF registered with SEBI
a category III AIF registered with SEBi
A company regsiteerd as NBFC with RBI

A fund that provide both equity and unsecured debt financiang to early stage start-ups would classify as which of the following?

Ventre Capital fund
Unsecured Bnd fund
NBFC
Portfolio Management Services (PMS)

An allignment if interest is is required between

AIF and its auditors
the AIF managers and its Investors
the AIF and its subsidiaries
the LLP and the trust

An AIF that aims ot invest in listed securities and the derivatives and other complex trading stargies is categorised as __________

Cat I
Cat II
Cat III
All of the Above

Which of the following is the eligible condition for being the sponsor of the AIF?

A person who is convivted under criminal offense but awating judicial sentencing
Person with an unsound ind and undergoing treatment
A Person who is insolvent and awaiting to file bankruptcy
Fit and Proper person as detrmined by SEBI

What is the minimum contribution requirement to start an AIF under Cat I & II?

20 crores
100 Crores
50 Crores
5 Corres

The minim number if clients allowed in an AIF is ___________

No limit
1000
49
500

The following category of the investor is not suitable for uinvestment in AIF?

an Individual less than 60 years of age
Investor with no risks taking abilities
Member of an HUF
Partners of a firm

Break up value of share is arrived at using ___________-

Asset and Liabilites at the book value
Asset and Liabilites at the replacement Valaue
Asset and Liabilities at the Liquidation Value
Net asset at the book Value

The fund has to maintain records relating to

all material contract of the investee companies
Valuation policy and practises used in managing the AIF
Monetary policy adopted by the RBI
effective rate f the return

A Fund has a PIC of 0.90 means __________–

The fund is about to close its funding round
that it has only 10% NPA level
that the fund has a 90% recovery rate on the investment
that it has drawdown most of the capital comittments

The following tes of income will most likely be taxed as Income from Other Sources for a category III AIF, except ______________-

Dividend Income
Interest Income
Income from transaction in Exchange traded Derivatives
Deemed income on Investment on Shares below its Fair Market Value under section 56(2) (x) of the Income tax Act 1961

An AIF is liable to deduct at the rate of _________%, at the time of credit or at the time of payment of such income , whichever is earlier to the account of a resident investor

0.05
0.1
0.2
0.3

As per the SEBI regulations, all the Cat I & II AIF are supposed to disclose the details of the find investment objective, fund structure Investment methodology to the potential investor in their _____________

Private Placement Memorandum (PPM)
Private Placement Manager (PPM)
Primary Placement Memorandum (PPM)
Private Placement manager (PPM)

In Cat I & II AIF, Distributor may also assist in completing the KYC Documentation and verification process. State whether TRUE or FALSE

True
False

The inevstment manager shall clearly disclose the vauation method adopted by the fund for the valuation of illiquid securities approved by a __________

Investment Sponsor
Investor / Client
Registered Valuer
Registered Distrihutor

The ______________ is the thresh hold return iver which the Investent manager will be eligible to earn incentives fees

Preffered Return
Incentive Fees
Hurdle Rate
Set-up Costs

The minimum amount for investment in Angel fund is __________-

1 Crore
50 lakhs
25 Lakhs
10 Lakhs

The ________________ includes a Principal Purpose tests wherein tax benefits under a Double Taxation Avoidance Agreement (DTAA) can be denied if one of the purpose n arrangement or a transaction was to directly or indirectly obtain tax benefit.

MIL
DRAC
DAC
MLI

Complex fund structuring is requiredwhich makes it difficult for investors to comprehend in Alternate Investment. State true or False

True
False

Investment in listed Debt issued by both listed and Unlisted companies are considered as ______________

Alternate Investment
Dual Investment
Traditiona Investment
none of the Above

The distributor agreement is either Bi-partite or Tri-Partite

True
False

Asset Allocator in Institutional investment classes should not miss out on ____________

Improved Diversification
First Mover Return
Last exit return
Only 1 & 2

Benchmarking shall not apply to the angel fund registered under sub category of Venture Capital fund under ______________—-

Cat I – AIF
Cat II – AIF
Cat III – AIF
None of the abve

______________ are subject to high mortality risks, these funds assume higher risks seeking higher return.

Early Stage Ventures
Late Stage Venture
Social venture Funds
Public Funds

All borroiwng that rank less than secured debt with first stage are called ____________________

Senior Debt
Sub-Ordinate Debt
Venture Debt
Mezzanine Debt

Many types of debt that are private and are considered Alternate Investment because they are _______________

Illiquid
Not commonly held by traditiona Investor
Only Alternate of debt Funds
Both 1 & 2

The Hurdle rate in AIF ecosystem particularly refers to preffered return in ________________-

Hedge Funds
Venture Capital
Private Equity
Only 1 & 2

Any ofi the AIF oppurtunites sourced through the internal sources is reffered to as _____________—

Public Sourcing
Private Sourcing
Proprietory Sourcing
Team Sourcing

The WACC (Weighted Average Cost of Capital) will be based on the ____________ of the Company

Equity & Debt ratio
Asset Turn Over Ratio
Current ratio
Debt Coverage Ratio

Both FVCI and AIF regulation f SEBI are applicable to ______________

Parallel Structure
offshore Structure
Unfied Structure
Domestic Structure

In a prtnership structure, the _________________–are also partners along with the Investors in the fund.

Trustee
Custodian
Investment manager
All of the Above

The first drawdown is made by the Investment manager is done after the ______________ of the fund.

First Opening
First Closing
Consecutive Closing
Consecutive Ending

In _____________ , investors tends to Value immediate performance and have an outlook on the future.

Hedge Funds
Angel Fund
Venture capital
Private Equity

The Private Placement Memorandum (PPM) shall be filed with the SEBI atleast ____________ days prior to the launch of the scheme.

15 Days
7 Days
30 Days
45 days

The fund structure purely as PRIVATE DEBT FUND also qualify under the Cat ______ AIF

Cat I
Cat II
Cat III
Any of the Above

Alternate Investment is defined as a ______________-that doesnot fall into one of the conventional investment categories

Mutual Fund
Financial Asset
Personal Finance
Financial Planning

The due delligence review is conducted by _____________

The trustee of the AIF
The Auditor of the AIF
An agency appointed by the AIF
An Investment bank appointed by the AIF

A key component of the Investor presentation for Cat I or II AIF is ____________

The credit rating of the fund
The credit rating of the instrument for subscription
Key Appointees, fund structure, fee structure and Governace mechanism
the financial arrangement to leverage at the fund level

The term sheet is entered into by __________

the manager with a the potential investee company
the sponsor with the investor
the fund with the manager
the distributor with the investor

The Investment objective of an AIF refers to the __________

reporting requirements
Target TVPI
Investee Ocmpany performance
Identification of Investment Oppurtunities & Approach

One of the key provision of a Distributor agreement is ______________

The role of the distributor in the inevstment strategy
the quantum of risks to be assumed by the AIF
the applicability of the SEBI AIF Regulation 2012 to the fund
The commercial understanding with the distributor for distributing the fund withpotential investors.

The following income is taxed at the fund level for an AIF.

Capital Gain
Business Income
Income from House and propoerty
Income from other sources

Relative Valuation measures consists of ________

Evaluating using multiple of established parametres
Valuation using P/E Ratio
Finding the comparable cash flows
Discounting the relative Cash flows

Under SEBI AIF 2012 regulations, annual reporting to Investors by an AIF shall be ___________-

towards the end of the fund tenure
after the final clos
within 180 days from the close of the financial year
within 90 days from the date of balance sheet.

One of the criterion to evaluate a fund manager is _________________

economic risks associated with the fund
the timings of the cash flows
the prior performance track record of the fund and the manager
The genral investment climate within the country

Which of the following trust structure is suitable for AIF in India?

Public Charitable Trust
Limited Liability Trust
Partnership trust
Determinate Trust

Which of the following is the minimum stipulated amount required by the investor in AIF scheme?

1 Crore
25 lakhs
5 Crore
20 Crore

One of the key disclosure in a PPM is ____________

The amount of Investment to be made by the investor
the management fee structure
the details of the asset securities
the minimum guaranteed return

The following is the most common structure adopted for domestic AIF in India

Company
Partnership
Trust
NBFC

One of the Key risks in an Investment in AIF is _________

the risks of capital Adequacy
the risks of inadequate provisioning against NPAs
Illiquidity risks
the risk of inadequate security creation

Investment fund under the Income tax Act 1961 refers to the ___________

an Investment company registered with SEBI
Cat I & II AIF registered with SEBI
a category III AIF registered with SEBi
A company regsiteerd as NBFC with RBI

A fund that provide both equity and unsecured debt financiang to early stage start-ups would classify as which of the following?

Ventre Capital fund
Unsecured Bnd fund
NBFC
Portfolio Management Services (PMS)

An allignment if interest is is required between

AIF and its auditors
the AIF managers and its Investors
the AIF and its subsidiaries
the LLP and the trust

An AIF that aims ot invest in listed securities and the derivatives and other complex trading stargies is categorised as __________

Cat I
Cat II
Cat III
All of the Above

Which of the following is the eligible condition for being the sponsor of the AIF?

A person who is convivted under criminal offense but awating judicial sentencing
Person with an unsound ind and undergoing treatment
A Person who is insolvent and awaiting to file bankruptcy
Fit and Proper person as detrmined by SEBI

What is the minimum contribution requirement to start an AIF under Cat I & II?

20 crores
100 Crores
50 Crores
5 Corres

The minim number if clients allowed in an AIF is ___________

No limit
1000
49
500

The following category of the investor is not suitable for uinvestment in AIF?

an Individual less than 60 years of age
Investor with no risks taking abilities
Member of an HUF
Partners of a firm

Break up value of share is arrived at using ___________-

Asset and Liabilites at the book value
Asset and Liabilites at the replacement Valaue
Asset and Liabilities at the Liquidation Value
Net asset at the book Value

The fund has to maintain records relating to

all material contract of the investee companies
Valuation policy and practises used in managing the AIF
Monetary policy adopted by the RBI
effective rate f the return

A Fund has a PIC of 0.90 means __________–

The fund is about to close its funding round
that it has only 10% NPA level
that the fund has a 90% recovery rate on the investment
that it has drawdown most of the capital comittments

The following tes of income will most likely be taxed as Income from Other Sources for a category III AIF, except ______________-

Dividend Income
Interest Income
Income from transaction in Exchange traded Derivatives
Deemed income on Investment on Shares below its Fair Market Value under section 56(2) (x) of the Income tax Act 1961

An AIF is liable to deduct at the rate of _________%, at the time of credit or at the time of payment of such income , whichever is earlier to the account of a resident investor

0.05
0.1
0.2
0.3

As per the SEBI regulations, all the Cat I & II AIF are supposed to disclose the details of the find investment objective, fund structure Investment methodology to the potential investor in their _____________

Private Placement Memorandum (PPM)
Private Placement Manager (PPM)
Primary Placement Memorandum (PPM)
Private Placement manager (PPM)

In Cat I & II AIF, Distributor may also assist in completing the KYC Documentation and verification process. State whether TRUE or FALSE

True
False

The inevstment manager shall clearly disclose the vauation method adopted by the fund for the valuation of illiquid securities approved by a __________

Investment Sponsor
Investor / Client
Registered Valuer
Registered Distrihutor

The ______________ is the thresh hold return iver which the Investent manager will be eligible to earn incentives fees

Preffered Return
Incentive Fees
Hurdle Rate
Set-up Costs

The minimum amount for investment in Angel fund is __________-

1 Crore
50 lakhs
25 Lakhs
10 Lakhs

The ________________ includes a Principal Purpose tests wherein tax benefits under a Double Taxation Avoidance Agreement (DTAA) can be denied if one of the purpose n arrangement or a transaction was to directly or indirectly obtain tax benefit.

MIL
DRAC
DAC
MLI

Complex fund structuring is requiredwhich makes it difficult for investors to comprehend in Alternate Investment. State true or False

True
False

Investment in listed Debt issued by both listed and Unlisted companies are considered as ______________

Alternate Investment
Dual Investment
Traditiona Investment
none of the Above

The distributor agreement is either Bi-partite or Tri-Partite

True
False

Asset Allocator in Institutional investment classes should not miss out on ____________

Improved Diversification
First Mover Return
Last exit return
Only 1 & 2

Benchmarking shall not apply to the angel fund registered under sub category of Venture Capital fund under ______________—-

Cat I – AIF
Cat II – AIF
Cat III – AIF
None of the abve

______________ are subject to high mortality risks, these funds assume higher risks seeking higher return.

Early Stage Ventures
Late Stage Venture
Social venture Funds
Public Funds

All borroiwng that rank less than secured debt with first stage are called ____________________

Senior Debt
Sub-Ordinate Debt
Venture Debt
Mezzanine Debt

Many types of debt that are private and are considered Alternate Investment because they are _______________

Illiquid
Not commonly held by traditiona Investor
Only Alternate of debt Funds
Both 1 & 2

The Hurdle rate in AIF ecosystem particularly refers to preffered return in ________________-

Hedge Funds
Venture Capital
Private Equity
Only 1 & 2

Any ofi the AIF oppurtunites sourced through the internal sources is reffered to as _____________—

Public Sourcing
Private Sourcing
Proprietory Sourcing
Team Sourcing

The WACC (Weighted Average Cost of Capital) will be based on the ____________ of the Company

Equity & Debt ratio
Asset Turn Over Ratio
Current ratio
Debt Coverage Ratio

Both FVCI and AIF regulation f SEBI are applicable to ______________

Parallel Structure
offshore Structure
Unfied Structure
Domestic Structure

In a prtnership structure, the _________________–are also partners along with the Investors in the fund.

Trustee
Custodian
Investment manager
All of the Above

The first drawdown is made by the Investment manager is done after the ______________ of the fund.

First Opening
First Closing
Consecutive Closing
Consecutive Ending

In _____________ , investors tends to Value immediate performance and have an outlook on the future.

Hedge Funds
Angel Fund
Venture capital
Private Equity

The Private Placement Memorandum (PPM) shall be filed with the SEBI atleast ____________ days prior to the launch of the scheme.

15 Days
7 Days
30 Days
45 days

The fund structure purely as PRIVATE DEBT FUND also qualify under the Cat ______ AIF

Cat I
Cat II
Cat III
Any of the Above

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