NISM 19D Alternative Investment Fund Managers Certification Exam Notes
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Investment Objectives: Most investors aim for capital appreciation, income generation, or capital preservation based on their risk tolerance and financial goals.
Risk and Return: Higher expected returns are typically associated with higher risks, as illustrated by the risk-return tradeoff.
Types of Risks: Investors face market risk, credit risk, liquidity risk, operational risk, and currency risk, among others.
Pure Rate of Interest: The interest rate on risk-free investments like treasury bonds, excluding inflation and risk premiums.
Inflation Premium: Compensation demanded by investors to offset the loss of purchasing power due to inflation.
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