Question 1 of 100
With reference to investments, consider the following:
I. Bonds
II. Hedge Funds
III. Stocks
IV. Venture Capital
How many of the above are treated as Alternative Investment Funds?
Correct answer Option B
SEBI (AIF) Regulations, 2012 define Alternative Investment Funds as privately pooled investment vehicles that are *not* covered under traditional securities regulations.
- I. Bonds ✗ — a conventional debt security, traded on regular markets.
- II. Hedge Funds ✓ — classified as Category III AIF.
- III. Stocks ✗ — conventional equity security, traded on stock exchanges.
- IV. Venture Capital ✓ — classified as Category I AIF.
Only Hedge Funds and Venture Capital qualify as AIFs ⇒ two.
— Option B