UPSC CSE Prelims
Question 46
With reference to investments, consider the following :
- Bonds
- Hedge Funds
- Stocks
- Venture Capital
How many of the above are treated as Alternative Investment Funds?
View correct answer and explanation
Correct answer: B
Correct Option: B (Only two)
Explanation: Hedge funds and venture-capital funds fall under SEBI's Alternative Investment Fund framework. Regular bonds and stocks are traditional investment securities, so only two listed categories are AIFs.
Statement / Pair / Item-wise Analysis:
I: Bonds-traditional debt security, not an AIF type.
II: Hedge funds-Category III AIFs.
III: Stocks-traditional equity security, not an AIF type.
IV: Venture-capital funds-Category I AIFs.
Option-wise Analysis:
A. Incorrect-'Only one' understates the verified count of 2.
B. Correct-this matches the facts and the item-wise assessment above.
C. Incorrect-'Only three' overstates the verified count of 2.
D. Incorrect-'All the four' overstates the verified count of 2.