Alternative Investment Funds
Question
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?
Options
Only one
Only two
Only three
All the four
Explanation
Hedge Funds and Venture Capital are Alternative Investment Funds (AIFs). Bonds and Stocks are traditional investments.
AIFs represent privately pooled investment vehicles collecting funds from sophisticated investors. They bypass traditional public market regulations. Traditional assets like bonds and stocks do not fall under the SEBI AIF Regulations, 2012.
Answer: (b).
Question details
Year
2025
Paper
GS Paper 1
Question
Q1
Subject
Economy
Sub-topic
Financial Markets & Instruments
Type
How-many counting
Difficulty
Medium
Nature
Static
Source hint
SEBI AIF Regulations 2012
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