Q1 · UPSC Prelims 2025 · Set A · Economy

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With reference to investments, consider the following:I.BondsII.Hedge FundsIII.StocksIV.Venture CapitalHow many of the above are treated as Alternative Investment Funds?

A Only one
B Only two
C Only three
D All the four

Correct answer: (b) Only two

Explanation

  1. A

    Only one

    Only one. Two AIF classes are in the list.

  2. B

    Only two

    Only two. II Hedge funds and IV Venture capital are AIF categories (SEBI AIF Regulations, 2012 — Cat III and Cat I neighbourhood). I Bonds and III Stocks are mainstream listed/unlisted securities, not AIFs as a class.

  3. C

    Only three

    Only three. Would need bonds or stocks to be AIFs. They are not.

  4. D

    All the four

    All four. Bonds and stocks fail.

Summary. Official key is (b) only two. Hedge funds and venture capital are Alternative Investment Funds under SEBI. Listed stocks and ordinary bonds are standard securities, not AIFs. (a) under-counts; (c)(d) pull in stocks or bonds.

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