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?

Gives SEBI's definition of an AIF as a 'privately pooled investment vehicle' collecting funds from investors to invest per a policy.

A student could use the distinction between an 'investment vehicle' (a fund) and a 'security' (a bond) on a world map of financial instrument types to infer that a bond (an instrument) is likely different from an AIF (a pooled fund).

States NIIF is registered as a Category II AIF and that NIIF may invest in both equity and debt (market borrowings).

From this, one can infer AIFs can hold debt instruments (like bonds) — a student could therefore distinguish 'AIFs can invest in bonds' from 'bonds are AIFs' and check which is being claimed.

Describes NIIF as an AIF-type vehicle used as an alternative source of long-term capital for infrastructure, indicating AIFs are funds for channeling capital.

A learner could combine this with general finance knowledge that funds (pooled vehicles) channel capital by buying instruments (e.g., bonds), supporting the view that bonds are investible assets held by AIFs rather than being AIFs themselves.

Explains InvITs and REITs are SEBI-regulated trusts that pool money and invest in assets, analogous to AIFs as pooled investment structures.

Using this pattern that SEBI-regulated vehicles are structures that pool investor money to buy assets, a student can extend that bonds are likely assets these vehicles may buy, not the vehicle itself.

Notes SEBI's role in approvals for foreign investment in government and corporate bonds, showing bonds are treated as tradable securities subject to regulator rules distinct from fund registration.

A student could combine this with the AIF-definition to reason that bonds are securities under SEBI oversight while AIFs are a separate category of registered pooled funds that may invest in such securities.

Gives SEBI's definition of an Alternative Investment Fund: a privately pooled investment vehicle collecting funds from sophisticated investors and regulated by SEBI — a general rule that could describe hedge-fund structures.

A student could compare typical hedge-fund characteristics (privately pooled, sophisticated investors, active investment policies) on a world-map of fund types to judge whether hedge funds meet SEBI's AIF definition and thus might be classified as AIFs.

Shows SEBI registers different large funds (NIIF) under specific AIF categories (Category II), indicating AIF is a regulatory category used to classify various fund types.

One could use this pattern to check SEBI's AIF categorisation (Category I/II/III) to see which category a hedge-fund-like vehicle would map to.

Notes that participatory notes are used by investors or hedge funds not registered with SEBI, implying hedge funds may operate outside SEBI registration or use offshore routes.

A student could infer that if many hedge funds operate via PNs/offshore, not all hedge funds operating in India are registered as AIFs and should verify SEBI registration requirements for hedge funds.

Mentions a Strategic Fund registered as an Alternative Investment Fund II, showing examples of non-bank, non-mutual-fund institutional vehicles being classified as AIFs.

Use this example to reason that various institutional/private pooled funds (including possible hedge-fund formats) can be registered as AIFs under SEBI, subject to fit with rules and categories.

Gives SEBI's definition of an Alternative Investment Fund as a 'privately pooled investment vehicle' that collects funds from sophisticated investors to invest per a defined policy.

A student could use this definition to contrast the legal/functional form of a stock (an individual security representing company ownership) with a pooled vehicle, to judge whether a stock itself fits the AIF definition.

Notes a specific fund 'registered as an Alternative Investment Fund II' whose objective is to 'invest largely in equity and equity-linked instruments.'

This suggests AIFs may invest in stocks (equity), so a student could infer AIFs are vehicles that hold stocks rather than stocks being AIFs themselves.

States NIIF is registered under Category II of AIF and that it 'will invest in infrastructure projects through equity and debt both', implying AIFs operate by investing in equity instruments.

A student could use this example to reason that AIFs are fund entities that invest in equities (stocks) rather than being the equities themselves.

Lists SEBI's functions including regulation of stock exchanges and regulation/registration of mutual funds and other market participants, indicating SEBI treats fund vehicles and stocks/exchanges as distinct regulated categories.

A student could combine this pattern of separate regulatory roles to argue stocks (as exchange-traded securities) are not the same regulatory category as AIFs (registered pooled funds).

Explains ETFs and mutual funds as distinct investment products and contrasts ETFs (trade like stocks) with mutual funds (purchased at day-end), illustrating different product forms: securities vs pooled funds.

A student could extend this product-distinction idea to categorize 'stocks' as tradable underlying securities, while AIFs are pooled investment vehicles that may hold such securities.

Gives SEBI's definition of an Alternative Investment Fund as a privately pooled investment vehicle that collects funds from sophisticated investors for investment according to a defined policy.

A student can compare features of typical venture capital funds (privately pooled, raise from sophisticated investors, invest per a defined policy) to judge whether VCs fit the AIF definition.

States NIIF is registered with SEBI under Category II of AIF and that it is formed to invest in equity and equity-linked instruments.

Since venture capital typically invests in equity/equity-linked instruments, a student could infer that funds with a similar investment mandate might fall under AIF Category II and then check SEBI category rules for VC fit.

Mentions a 'Strategic Fund' registered as an Alternative Investment Fund II whose objective is to invest largely in equity and equity-linked instruments.

A student could use this example to generalize that equity-focused private funds are classed as AIF Category II, and then see whether venture capital (equity in startups) aligns with that pattern.

Refers to the India Aspiration Fund set up for venture capital financing of new setups and expanding MSMEs (i.e., identifies an institutional vehicle for VC financing).

A student could investigate whether such named VC financing vehicles are formally registered/regulated as AIFs under SEBI, using the fact that SEBI is the regulator mentioned elsewhere.

Explains that SEBI regulates capital markets and is the authority for approvals and regulation of various investment structures.

A student can use this to justify checking SEBI classifications (AIF categories and definitions) to determine whether VC funds are covered under those regulations.