Q1. With reference to investments, consider the following: (UPSC 2025)
- I. Bonds
- II. Hedge Funds
- III. Stocks
- IV. Venture Capital
How many of the above are treated as Alternative Investment Funds?
- (a) Only one
- (b) Only two
- (c) Only three
- (d) All the four
Answer: (b) Only two
Explanation: Alternative Investment Funds (AIFs) refer to privately pooled investment funds, such as hedge funds, private equity, venture capital, etc. They are regulated under SEBI (Alternative Investment Funds) Regulations, 2012.
Hedge Funds and Venture Capital are part of AIFs.
Bonds and Stocks are conventional investment options and fall under traditional instruments, not AIFs.
Therefore, only II and IV are treated as AIFs.
Hedge Funds and Venture Capital are part of AIFs.
Bonds and Stocks are conventional investment options and fall under traditional instruments, not AIFs.
Therefore, only II and IV are treated as AIFs.
