With reference to investments, consider the following: I. Bonds II. Hedge Funds III. Stocks IV. Venture…

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?
  1. Only one
  2. Only two
  3. Only three
  4. All the four

Solution

Alternative Investment Funds (AIFs) under SEBI regulations include Hedge Funds (Category III) and Venture Capital (Category I). Plain bonds and listed stocks are traditional investments, not AIFs. Hence two of the four are AIFs. [Sources disagree: Insights IAS — B; Prepp — C. Flagged as provisional.]

Asked in: UPSC Prelims 2025

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