NISM Series XIX-E Mock Test: Category III Alternative Investment Fund Managers
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-E exam
NISM Series XIX-E is the manager certification for Category III AIFs — portfolio and capital market theory, Category III strategies, leverage and risk, fees, valuation, governance, taxation and regulation.
Who should take it: Investment team members of Category III AIF managers running long-only, long-short and derivatives-based strategies.
NISM Series XIX-E exam pattern
| Questions | 100 multiple-choice questions |
|---|---|
| Total marks | 100 |
| Duration | 180 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-E question bank
Our 50-question bank for NISM Series XIX-E covers every chapter below. Mock tests mix questions across all of them in the same proportion as the real paper.
- Investments Landscape2 practice questions
- Types of Investments3 practice questions
- Modern Portfolio Theory and Capital Market Theory4 practice questions
- AIFs in India and Its Suitability3 practice questions
- AIF Ecosystem3 practice questions
- AIF Structuring3 practice questions
- Fee Structure and Fund Performance5 practice questions
- Indices and Benchmarking3 practice questions
- Legal Documentation and Negotiations3 practice questions
- Investment Strategies5 practice questions
- Governance of Funds and Due Diligence3 practice questions
- Valuation3 practice questions
- Fund Monitoring, Reporting and Exit3 practice questions
- Taxation2 practice questions
- Regulatory Framework5 practice questions
Free NISM Series XIX-E 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.
Which feature of listed markets makes them the main playground for Category III strategies?
- Absence of regulation
- Liquidity and continuous price discovery that allow frequent trading and hedging
- Guaranteed returns
- Fixed prices set by SEBI
Show answer & explanation
Answer: B. Liquidity and continuous price discovery that allow frequent trading and hedging
Category III funds trade actively, which requires liquid instruments with transparent prices.
A stock trading at ₹500 has a 1-month futures price of ₹505. A fund buys the stock and sells the futures. If held to expiry and prices converge, its gross gain per share is:
- ₹505
- ₹10
- ₹0
- ₹5
Show answer & explanation
Answer: D. ₹5
At expiry spot and futures converge, locking in the ₹5 basis captured at entry (before costs).
Two assets have standard deviations of 20% and 10% and zero correlation. A 50:50 portfolio has a standard deviation of approximately:
- 15.0%
- 10.0%
- 11.2%
- 22.4%
Show answer & explanation
Answer: C. 11.2%
Variance = 0.25×0.04 + 0.25×0.01 = 0.0125; σ = √0.0125 ≈ 11.2%.
Which characteristic of a Category III AIF is a key differentiator from a mutual fund?
- It is offered to retail investors with small SIPs
- It cannot invest in derivatives
- It must publish daily NAV on exchanges
- It may use leverage up to regulatory limits and is privately placed to investors meeting minimum ticket requirements
Show answer & explanation
Answer: D. It may use leverage up to regulatory limits and is privately placed to investors meeting minimum ticket requirements
Category III AIFs are private, high-ticket vehicles with more flexible strategies than mutual funds.
A Category III fund's prime broker defaults. The risk the fund faces is best described as:
- Counterparty risk
- Inflation risk
- Reinvestment risk
- Duration risk
Show answer & explanation
Answer: A. Counterparty risk
Exposure to a failing intermediary that holds collateral or provides financing is counterparty risk.
NISM Series XIX-E 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-E mock test FAQs
How many questions are there in the NISM Series XIX-E exam?
The NISM Series XIX-E paper has 100 multiple-choice questions for 100 marks, to be completed in 180 minutes. This is the indicative pattern — always confirm it in the latest official notification.
Is there negative marking in NISM Series XIX-E?
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-E?
You need 60% to pass. Our mock tests show pass or fail against the same mark.
How many NISM Series XIX-E 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-E 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.