UPSC Previous Year Question | Prelims GS | 2025

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?

  1. Only one
  2. Only two
  3. Only three
  4. All the four

Answer

Correct Answer

Only two

Explanation

In India, SEBI regulates Alternative Investment Funds (AIFs), which include privately pooled vehicles such as Hedge Funds and Venture Capital funds. Bonds and Stocks are conventional, publicly traded securities and are not classified as AIFs. Hence only Hedge Funds and Venture Capital (two) qualify.

Topics: aif, economy, investments