Free CAFP — Certified Alternative Fund Practitioner Exam Questions and Answers
CAFP — Certified Alternative Fund Practitioner is one of the AAFM India tests covered here. AAFM India is a private company in New Delhi that markets a family of chartered finance designations — CWM, CTEP, AFA, Chartered Economist, Chartered Portfolio Manager and others — under licence from the Global Academy of Finance and Management, which acquired the original American Academy of Financial Management's intellectual property in January 2015. Its own about page states that it operates as an education and certification body and does not act as a regulator or licensing authority. CWM is the flagship: two levels, 85 questions in 180 minutes each, 50% to pass, no negative marking.
The first 10 questions on this page are free to read, answers included — no account and no card. A plan opens the rest of the bank, the full timed practice test and your weak-topic reporting.
Last updated: September 13, 2026
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Question #1
Which of the following is NOT an alternative investment?
Please select an optionIncorrectCorrect answer: A
Stocks are considered traditional investments, while the other options are alternative investments.
Was this answer correct?Question #2
What is the primary goal of a hedge fund?
Please select an optionIncorrectCorrect answer: D
Hedge funds aim for absolute returns, regardless of market conditions.
Was this answer correct?Question #3
Which term refers to the practice of pooling capital from investors?
Please select an optionIncorrectCorrect answer: B
Fundraising is the correct term for pooling capital from investors.
Was this answer correct?Question #4
What is a key characteristic of private equity funds?
Please select an optionIncorrectCorrect answer: C
Private equity funds are typically structured as limited partnerships.
Was this answer correct?Question #5
Which of the following is a risk associated with alternative investments?
Please select an optionIncorrectCorrect answer: D
Illiquidity is a unique risk associated with alternative investments due to their longer investment horizon.
Was this answer correct?Question #6
What distinguishes a fund of funds from a traditional mutual fund?
Please select an optionIncorrectCorrect answer: B
A fund of funds primarily invests in other investment funds rather than directly in stocks.
Was this answer correct?Question #7
Which strategy focuses on exploiting price inefficiencies?
Please select an optionIncorrectCorrect answer: D
Arbitrage involves taking advantage of price discrepancies in different markets.
Was this answer correct?Question #8
What is the typical duration of a private equity investment?
Please select an optionIncorrectCorrect answer: B
Private equity investments usually have a duration of 5-10 years before exit.
Was this answer correct?Question #9
Which of the following describes a distressed asset?
Please select an optionIncorrectCorrect answer: C
A distressed asset is one that is not performing well or is under financial duress.
Was this answer correct?Question #10
What does 'due diligence' in private equity refer to?
Please select an optionIncorrectCorrect answer: D
Due diligence refers to the thorough investigation of an investment prior to making a decision.
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Other AAFM India certifications
- CRA — Chartered Risk Analyst (opens in a new tab)
- CFP — Certified Financial Planner (opens in a new tab)
- CPFA — Certified Private Fund Advisor (opens in a new tab)
- CFA — Chartered Financial Analyst (opens in a new tab)
- MFP — Master Financial Planner (opens in a new tab)
- CRBA — Certified Risk and Business Analyst (opens in a new tab)
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FAQ
Learn More: https://www.aafmindia.co.in/best-finance-courses-in-india.aspx
- Q1: What is the CAFP — Certified Alternative Fund Practitioner exam?
- A: CAFP — Certified Alternative Fund Practitioner is a AAFM India certification exam. Judging by the questions in our bank, it concentrates on alternative, hedge, funds, investments and fund.
- Q2: What topics does the CAFP — Certified Alternative Fund Practitioner exam cover?
- A: Questions in our CAFP — Certified Alternative Fund Practitioner bank cluster around alternative, hedge, funds, investments, fund, investment, equity and private. Working through the full set is the quickest way to find which of these you are weakest on.
- Q3: How should I prepare for CAFP — Certified Alternative Fund Practitioner?
- A: Work through the CAFP — Certified Alternative Fund Practitioner practice questions here, checking your answer on each one, then sit the practice test to rehearse the exam under timed conditions before the real thing.
- Q4: Are these real CAFP — Certified Alternative Fund Practitioner exam questions?
- A: They are drawn from officially released past questions and from community members who have sat CAFP — Certified Alternative Fund Practitioner. Answers are verified and updated weekly.
- Q5: Where do I register for the CAFP — Certified Alternative Fund Practitioner exam?
- A: Register through AAFM India directly at https://www.aafmindia.co.in/best-finance-courses-in-india.aspx. Exampractice is not affiliated with AAFM India and does not administer the exam.
- Q6: Is there a free CAFP — Certified Alternative Fund Practitioner sample?
- A: Yes. Every CAFP — Certified Alternative Fund Practitioner page shows a free sample of real questions. Upgrading opens the full bank and the practice test.
- Q7: What are AAFM India Certification Exams?
- A: AAFM (American Academy of Financial Management) India Certification Exams are professional examinations that validate expertise in financial planning, wealth management, risk management, and related financial disciplines.
- Q8: Why should I pursue AAFM India Certification?
- A: AAFM India Certification enhances your professional credibility, showcasing your skills and knowledge in financial management, which can lead to better job opportunities, higher salaries, and career advancement.
- Q9: What are the benefits of AAFM India Certification?
- A: Benefits include recognition as a certified financial expert, improved job performance, access to exclusive resources, and the ability to stay current with the latest financial strategies and practices.
- Q10: Who should take AAFM India Certification Exams?
- A: Financial professionals, wealth managers, risk managers, investment advisors, and anyone involved in financial planning or management should consider these certifications to validate their expertise and advance their careers.
- Q11: What types of AAFM India Certification Exams are available?
- A: AAFM India offers various certification paths such as Chartered Wealth Manager (CWM), Chartered Financial Goal Planner (CFGP), and Chartered Risk Analyst (CRA), each tailored to specific roles and expertise levels.
- Q12: How do I prepare for AAFM India Certification Exams?
- A: Preparation can include official AAFM India training programs, study guides, practice exams, and hands-on experience in financial management and planning.
- Q13: Where can I take AAFM India Certification Exams?
- A: AAFM India Certification Exams can be taken at authorized testing centers across India, providing flexibility to fit your schedule and location.
- Q14: How do AAFM India Certifications impact my career?
- A: AAFM India Certifications significantly boost your career by demonstrating your expertise to employers, making you a more competitive candidate for advanced roles and promotions in the financial industry.
- Q15: Are there any prerequisites for AAFM India Certification Exams?
- A: Some exams may have prerequisites, such as foundational knowledge or prior certifications. Check the specific requirements for each certification path on the AAFM India website.
- Q16: How often do I need to recertify for AAFM India Certifications?
- A: AAFM India Certifications typically require recertification every two to three years to ensure that certified professionals stay updated with the latest financial trends and practices.