NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Overview of Alternative Investment Funds (AIFs)
Which statement about the minimum corpus and tenure of a Category I or II AIF is correct under the AIF Regulations?
A Category I or II AIF scheme needs a minimum corpus of ₹20 crore and, being close-ended, a minimum tenure of three years. These floors ensure scale and a long-term commitment. Corpus of ₹10 crore, no tenure, or ₹50 crore with two years are incorrect.
- AMinimum corpus is ₹20 crore and a close-ended fund must have a minimum tenure of three yearsCorrect
- BMinimum corpus is ₹10 crore and tenure must be five years
- CMinimum corpus is ₹20 crore and there is no tenure requirement
- DMinimum corpus is ₹50 crore and tenure is two years
Explanation
Each AIF scheme needs a minimum corpus of ₹20 crore. Category I and II AIFs must be close-ended with a minimum tenure of three years. Other options misstate the corpus or tenure.
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