NISM Series XIX-B Mock Test: Alternative Investment Funds (Category III) Distributors
Up to 30 full-length mock tests of 100 questions each, built on the official syllabus, with an explanation for every answer.
About the NISM Series XIX-B exam
NISM Series XIX-B covers Category III Alternative Investment Funds — hedge-fund-style strategies, long-short and derivatives use, leverage, fees and performance measurement, valuation, taxation and suitability.
Who should take it: Distributors and wealth managers who sell Category III AIFs to high-net-worth clients.
NISM Series XIX-B exam pattern
| Questions | 100 multiple-choice questions |
|---|---|
| Total marks | 100 |
| Duration | 120 minutes |
| Passing score | 60% |
| Negative marking | −0.25 mark per wrong answer |
Indicative pattern. Exam bodies revise patterns — confirm the details in the latest official notification before your exam.
Syllabus covered in our NISM Series XIX-B question bank
Our 50-question bank for NISM Series XIX-B covers every chapter below. Mock tests mix questions across all of them in the same proportion as the real paper.
- Overview of Alternative Investments4 practice questions
- Growth of AIFs in India and Suitability of Category III AIFs5 practice questions
- Introduction to Category III AIF Ecosystem4 practice questions
- Category III AIF: Fund Structures and Service Providers5 practice questions
- Regulatory Framework7 practice questions
- Fees Structure, Fund Performance and Benchmarking7 practice questions
- Category III AIF Investment Strategies and Due Diligence Process7 practice questions
- Valuation4 practice questions
- Taxation4 practice questions
- Good Practices3 practice questions
Free NISM Series XIX-B sample questions
Try five questions from our bank. Each mock test gives you 100 like these, with your score, chapter-wise analysis and explanations at the end.
Hedge-fund-style strategies are usually described as 'absolute return' strategies because they:
- Aim to generate positive returns across market conditions rather than merely beat an index
- Guarantee a fixed return every year
- Track an index with zero tracking error
- Invest only in government securities
Show answer & explanation
Answer: A. Aim to generate positive returns across market conditions rather than merely beat an index
Absolute return funds target returns independent of market direction, using tools such as shorting and hedging.
Which feature makes Category III AIFs different from Category I and II AIFs?
- They must invest only in unlisted start-ups
- They receive tax pass-through status
- They may employ leverage and complex trading strategies, including derivatives
- They cannot invest in listed securities
Show answer & explanation
Answer: C. They may employ leverage and complex trading strategies, including derivatives
Category III funds trade with a view to short-term returns and may use leverage, unlike Category I and II.
In a Category III AIF, the entity that sets up the fund and contributes the continuing interest is the:
- Sponsor
- Custodian
- Registrar and transfer agent
- Auditor
Show answer & explanation
Answer: A. Sponsor
The sponsor establishes the AIF and must maintain the required continuing interest in the scheme.
Most Category III AIFs in India are set up as trusts. The trustee's role is to:
- Execute the fund's trades
- Market the fund
- Oversee that the fund is managed in line with the trust deed and investors' interests
- Compute investors' tax returns
Show answer & explanation
Answer: C. Oversee that the fund is managed in line with the trust deed and investors' interests
The trustee holds trust property and supervises the manager's compliance with the trust deed and PPM.
For Category III AIFs, SEBI caps leverage such that gross exposure does not exceed:
- One time the NAV
- Five times the NAV
- Two times the fund's NAV
- Ten times the NAV
Show answer & explanation
Answer: C. Two times the fund's NAV
Category III AIFs may use leverage only up to a gross exposure of 2x NAV.
NISM Series XIX-B mock test plans
Every plan unlocks one full-length mock test per day of the plan. Prices include GST.
| Plan | Mock tests | Questions | Price |
|---|---|---|---|
| 10 Days | 10 mock tests | 1,000 questions | ₹199 incl. GST |
| 15 Days | 15 mock tests | 1,500 questions | ₹279 incl. GST |
| 20 Days Popular | 20 mock tests | 2,000 questions | ₹349 incl. GST |
| 30 Days Best value | 30 mock tests | 3,000 questions | ₹449 incl. GST |
Official study material
Links open the official website. We do not host or alter official material.
NISM Series XIX-B mock test FAQs
How many questions are there in the NISM Series XIX-B exam?
The NISM Series XIX-B paper has 100 multiple-choice questions for 100 marks, to be completed in 120 minutes. This is the indicative pattern — always confirm it in the latest official notification.
Is there negative marking in NISM Series XIX-B?
Yes. −0.25 mark per wrong answer (25% of the marks for that question). Our mock tests apply the same rule.
What is the pass mark for NISM Series XIX-B?
You need 60% to pass. Our mock tests show pass or fail against the same mark.
How many NISM Series XIX-B mock tests do I get?
One full-length mock test is unlocked for each day of your plan: 10, 15, 20 or 30 mock tests on the 10 Days, 15 Days, 20 Days or 30 Days plans. You can retake any unlocked test while your plan is active.
Are these the actual exam questions?
No. Every question is an original practice question written to match the official syllabus and the exam's style. Reproducing real exam questions is not permitted, and we do not do it.
Where can I get the official NISM Series XIX-B study material?
NISM provides the latest workbook free of cost on its official portal after a short registration. The link is in the Official study material section on this page.