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With reference to investments, consider the following

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?

(a)

Only one

(b)

Only two

(c)

Only three

(d)

All the four

Answer:

(b)

Moderate

Newspaper/CA

Core Books/NCERT

Explanation

Alternative Investment Funds (AIFs) are privately pooled investment vehicles that collect funds from investors, whether Indian or foreign, for investing in various asset classes like private equity, venture capital, real estate, hedge funds, etc. Unlike traditional investments such as mutual funds or stocks… hence the correct answer is B , only two.