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Q1·GS Paper 1 · Prelims 2025

Alternative Investment Funds

EconomyFinancial Markets & InstrumentsHow-many countingMediumStatic

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

a

Only one

b

Only two

Answer
c

Only three

d

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.

Traditional assets are public and standard; AIFs are private, pooled, and unconventional.

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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