With reference to investments, consider the following:

I. Bonds
III. Stocks
II. Hedge Funds
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

Explanation

Understanding Alternative Investment Funds (AIFs)

As per SEBI regulations in India and general global classifications:

AIFs refer to privately pooled investment funds, which include investments that fall outside traditional asset classes such as stocks and bonds.

Evaluation of the Options:

Bonds
❌ Not an AIF
Bonds are traditional debt instruments — not considered alternative investments.
Stocks
❌ Not an AIF
Stocks or equities are part of traditional investments.
Hedge Funds
✅ AIF
Hedge funds are classic examples of AIFs as they use pooled funds and diverse strategies.
Venture Capital
✅ AIF
Venture capital funds are a category of AIFs that invest in early-stage startups.