October 19, 2025

With reference to investments, consider the following

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.

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