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Series XIX-C · Practice Set 2

NISM Series XIX-C: Alternative Investment Fund Managers Certification — Practice Set 2 Practice Questions

Second original practice set for NISM Series XIX-C: Alternative Investment Fund Managers Certification with scenario-style questions. Every question below shows the correct answer and a full explanation, so you can read through this set as a study page or attempt it as a timed mock test.

Attempt this set as a timed mock

Prefer an exam-like experience? Start this set as a shuffled, timed mock test with instant scoring, negative marking, and a full review screen.

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Practice questions

All 35 questions in Practice Set 2

Read each question, think through your answer, then expand it to check the correct option and explanation.

AIF governance

Q1. A candidate is reviewing a case where AIF governance affects an investor outcome. What should be checked first?

  1. A. The applicable rule, product feature, or process requirement
  2. B. Only the final numerical option
  3. C. Whether the option sounds familiar
  4. D. The shortest answer choice
Show correct answer & explanation

Correct answer: A. The applicable rule, product feature, or process requirement

Case questions usually test whether the learner can connect facts with the correct rule, product feature, or process.
AIF governance

Q2. During AIF governance revision, two options appear similar. What is the best way to decide?

  1. A. Compare the exact wording and identify the condition that changes the answer
  2. B. Choose the option with broader language every time
  3. C. Avoid the question
  4. D. Select the first familiar term
Show correct answer & explanation

Correct answer: A. Compare the exact wording and identify the condition that changes the answer

Similar options are common in certification exams. The exact condition in the question usually separates the correct answer from a distractor.
AIF governance

Q3. A process under AIF governance is not documented properly. What is the main risk?

  1. A. Weak audit trail, operational errors, or investor grievance
  2. B. Higher practice score
  3. C. Faster certification approval
  4. D. Automatic compliance
Show correct answer & explanation

Correct answer: A. Weak audit trail, operational errors, or investor grievance

Documentation supports accountability, auditability, and dispute resolution.
AIF governance

Q4. Which response shows the best professional conduct in a AIF governance situation?

  1. A. Explain risks and follow the prescribed process
  2. B. Hide limitations to complete the transaction quickly
  3. C. Ignore suitability concerns
  4. D. Rely only on verbal assumptions
Show correct answer & explanation

Correct answer: A. Explain risks and follow the prescribed process

Professional conduct requires transparency, process discipline, and investor-first decision making.
AIF governance

Q5. A mock result shows repeated errors in AIF governance. What should the learner do next?

  1. A. Read explanations, revise notes, and attempt a focused drill
  2. B. Move to another exam permanently
  3. C. Memorise only correct option letters
  4. D. Ignore skipped questions
Show correct answer & explanation

Correct answer: A. Read explanations, revise notes, and attempt a focused drill

Repeated errors are useful signals. They should guide focused revision before another timed attempt.
Portfolio construction

Q6. A candidate is reviewing a case where Portfolio construction affects an investor outcome. What should be checked first?

  1. A. The applicable rule, product feature, or process requirement
  2. B. Only the final numerical option
  3. C. Whether the option sounds familiar
  4. D. The shortest answer choice
Show correct answer & explanation

Correct answer: A. The applicable rule, product feature, or process requirement

Case questions usually test whether the learner can connect facts with the correct rule, product feature, or process.
Portfolio construction

Q7. During Portfolio construction revision, two options appear similar. What is the best way to decide?

  1. A. Compare the exact wording and identify the condition that changes the answer
  2. B. Choose the option with broader language every time
  3. C. Avoid the question
  4. D. Select the first familiar term
Show correct answer & explanation

Correct answer: A. Compare the exact wording and identify the condition that changes the answer

Similar options are common in certification exams. The exact condition in the question usually separates the correct answer from a distractor.
Portfolio construction

Q8. A process under Portfolio construction is not documented properly. What is the main risk?

  1. A. Weak audit trail, operational errors, or investor grievance
  2. B. Higher practice score
  3. C. Faster certification approval
  4. D. Automatic compliance
Show correct answer & explanation

Correct answer: A. Weak audit trail, operational errors, or investor grievance

Documentation supports accountability, auditability, and dispute resolution.
Portfolio construction

Q9. Which response shows the best professional conduct in a Portfolio construction situation?

  1. A. Explain risks and follow the prescribed process
  2. B. Hide limitations to complete the transaction quickly
  3. C. Ignore suitability concerns
  4. D. Rely only on verbal assumptions
Show correct answer & explanation

Correct answer: A. Explain risks and follow the prescribed process

Professional conduct requires transparency, process discipline, and investor-first decision making.
Portfolio construction

Q10. A mock result shows repeated errors in Portfolio construction. What should the learner do next?

  1. A. Read explanations, revise notes, and attempt a focused drill
  2. B. Move to another exam permanently
  3. C. Memorise only correct option letters
  4. D. Ignore skipped questions
Show correct answer & explanation

Correct answer: A. Read explanations, revise notes, and attempt a focused drill

Repeated errors are useful signals. They should guide focused revision before another timed attempt.
Risk controls

Q11. A candidate is reviewing a case where Risk controls affects an investor outcome. What should be checked first?

  1. A. The applicable rule, product feature, or process requirement
  2. B. Only the final numerical option
  3. C. Whether the option sounds familiar
  4. D. The shortest answer choice
Show correct answer & explanation

Correct answer: A. The applicable rule, product feature, or process requirement

Case questions usually test whether the learner can connect facts with the correct rule, product feature, or process.
Risk controls

Q12. During Risk controls revision, two options appear similar. What is the best way to decide?

  1. A. Compare the exact wording and identify the condition that changes the answer
  2. B. Choose the option with broader language every time
  3. C. Avoid the question
  4. D. Select the first familiar term
Show correct answer & explanation

Correct answer: A. Compare the exact wording and identify the condition that changes the answer

Similar options are common in certification exams. The exact condition in the question usually separates the correct answer from a distractor.
Risk controls

Q13. A process under Risk controls is not documented properly. What is the main risk?

  1. A. Weak audit trail, operational errors, or investor grievance
  2. B. Higher practice score
  3. C. Faster certification approval
  4. D. Automatic compliance
Show correct answer & explanation

Correct answer: A. Weak audit trail, operational errors, or investor grievance

Documentation supports accountability, auditability, and dispute resolution.
Risk controls

Q14. Which response shows the best professional conduct in a Risk controls situation?

  1. A. Explain risks and follow the prescribed process
  2. B. Hide limitations to complete the transaction quickly
  3. C. Ignore suitability concerns
  4. D. Rely only on verbal assumptions
Show correct answer & explanation

Correct answer: A. Explain risks and follow the prescribed process

Professional conduct requires transparency, process discipline, and investor-first decision making.
Risk controls

Q15. A mock result shows repeated errors in Risk controls. What should the learner do next?

  1. A. Read explanations, revise notes, and attempt a focused drill
  2. B. Move to another exam permanently
  3. C. Memorise only correct option letters
  4. D. Ignore skipped questions
Show correct answer & explanation

Correct answer: A. Read explanations, revise notes, and attempt a focused drill

Repeated errors are useful signals. They should guide focused revision before another timed attempt.
Valuation

Q16. A candidate is reviewing a case where Valuation affects an investor outcome. What should be checked first?

  1. A. The applicable rule, product feature, or process requirement
  2. B. Only the final numerical option
  3. C. Whether the option sounds familiar
  4. D. The shortest answer choice
Show correct answer & explanation

Correct answer: A. The applicable rule, product feature, or process requirement

Case questions usually test whether the learner can connect facts with the correct rule, product feature, or process.
Valuation

Q17. During Valuation revision, two options appear similar. What is the best way to decide?

  1. A. Compare the exact wording and identify the condition that changes the answer
  2. B. Choose the option with broader language every time
  3. C. Avoid the question
  4. D. Select the first familiar term
Show correct answer & explanation

Correct answer: A. Compare the exact wording and identify the condition that changes the answer

Similar options are common in certification exams. The exact condition in the question usually separates the correct answer from a distractor.
Valuation

Q18. A process under Valuation is not documented properly. What is the main risk?

  1. A. Weak audit trail, operational errors, or investor grievance
  2. B. Higher practice score
  3. C. Faster certification approval
  4. D. Automatic compliance
Show correct answer & explanation

Correct answer: A. Weak audit trail, operational errors, or investor grievance

Documentation supports accountability, auditability, and dispute resolution.
Valuation

Q19. Which response shows the best professional conduct in a Valuation situation?

  1. A. Explain risks and follow the prescribed process
  2. B. Hide limitations to complete the transaction quickly
  3. C. Ignore suitability concerns
  4. D. Rely only on verbal assumptions
Show correct answer & explanation

Correct answer: A. Explain risks and follow the prescribed process

Professional conduct requires transparency, process discipline, and investor-first decision making.
Valuation

Q20. A mock result shows repeated errors in Valuation. What should the learner do next?

  1. A. Read explanations, revise notes, and attempt a focused drill
  2. B. Move to another exam permanently
  3. C. Memorise only correct option letters
  4. D. Ignore skipped questions
Show correct answer & explanation

Correct answer: A. Read explanations, revise notes, and attempt a focused drill

Repeated errors are useful signals. They should guide focused revision before another timed attempt.
Compliance

Q21. A candidate is reviewing a case where Compliance affects an investor outcome. What should be checked first?

  1. A. The applicable rule, product feature, or process requirement
  2. B. Only the final numerical option
  3. C. Whether the option sounds familiar
  4. D. The shortest answer choice
Show correct answer & explanation

Correct answer: A. The applicable rule, product feature, or process requirement

Case questions usually test whether the learner can connect facts with the correct rule, product feature, or process.
Compliance

Q22. During Compliance revision, two options appear similar. What is the best way to decide?

  1. A. Compare the exact wording and identify the condition that changes the answer
  2. B. Choose the option with broader language every time
  3. C. Avoid the question
  4. D. Select the first familiar term
Show correct answer & explanation

Correct answer: A. Compare the exact wording and identify the condition that changes the answer

Similar options are common in certification exams. The exact condition in the question usually separates the correct answer from a distractor.
Compliance

Q23. A process under Compliance is not documented properly. What is the main risk?

  1. A. Weak audit trail, operational errors, or investor grievance
  2. B. Higher practice score
  3. C. Faster certification approval
  4. D. Automatic compliance
Show correct answer & explanation

Correct answer: A. Weak audit trail, operational errors, or investor grievance

Documentation supports accountability, auditability, and dispute resolution.
Compliance

Q24. Which response shows the best professional conduct in a Compliance situation?

  1. A. Explain risks and follow the prescribed process
  2. B. Hide limitations to complete the transaction quickly
  3. C. Ignore suitability concerns
  4. D. Rely only on verbal assumptions
Show correct answer & explanation

Correct answer: A. Explain risks and follow the prescribed process

Professional conduct requires transparency, process discipline, and investor-first decision making.
Compliance

Q25. A mock result shows repeated errors in Compliance. What should the learner do next?

  1. A. Read explanations, revise notes, and attempt a focused drill
  2. B. Move to another exam permanently
  3. C. Memorise only correct option letters
  4. D. Ignore skipped questions
Show correct answer & explanation

Correct answer: A. Read explanations, revise notes, and attempt a focused drill

Repeated errors are useful signals. They should guide focused revision before another timed attempt.
Portfolio construction

Q26. In Series XIX-C Scenario Practice, a learner wants to improve accuracy in Portfolio construction. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Valuation

Q27. In Series XIX-C Scenario Practice, a learner wants to improve accuracy in Valuation. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
AIF governance

Q28. In Series XIX-C Scenario Practice, a learner wants to improve accuracy in AIF governance. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Risk controls

Q29. In Series XIX-C Scenario Practice, a learner wants to improve accuracy in Risk controls. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Compliance

Q30. In Series XIX-C Scenario Practice, a learner wants to improve accuracy in Compliance. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Portfolio construction

Q31. In Series XIX-C Scenario Practice, a learner wants to improve accuracy in Portfolio construction. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Valuation

Q32. In Series XIX-C Scenario Practice, a learner wants to improve accuracy in Valuation. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
AIF governance

Q33. In Series XIX-C Scenario Practice, a learner wants to improve accuracy in AIF governance. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Risk controls

Q34. In Series XIX-C Scenario Practice, a learner wants to improve accuracy in Risk controls. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Compliance

Q35. In Series XIX-C Scenario Practice, a learner wants to improve accuracy in Compliance. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.

How to use this set

Work through the questions in order without expanding the answers first, exactly as you would in the real Series XIX-C exam. Once you have picked an option, expand the answer to confirm whether you were right and read the explanation, even for questions you answered correctly, since the reasoning behind each option is where most of the learning happens.

If you get a question wrong, note the topic tag above the question and revisit that topic in the Series XIX-C exam page before your next attempt. When you are ready for exam-condition practice, use the timed mock test above; it shuffles these questions, applies the negative marking rule, and gives you a scored review at the end.