AIFQ

Alternative investment is defined as a _________ that does not fall into one of the conventional investment categories.

• mutual fund

• financial asset

• personal property

• financial planning

The following is an example of alternative investment.

• Investment in AAA listed bond

• Investment in Government securities

• Purchase of commercial real estate

• Investment in Exchange traded futures

The SEBI (AIF) Regulations, 2012 define an AIF as a ________ structure.

• financial

• NBFC

• corporate

• privately pooled

A securitisation company floated by a bank is not an AIF under the SEBI (AIF) Regulations 2012. State whether True or False.

• True

• False

Alternative investment funds provide risk capital to businesses that have very high probability of failure due to their complex technologies. State whether True or False.

• True

• False

The following category of investors is not suitable to invest in an AIF.

• Individuals less than 60 years of age

• Individuals with no risk-taking capacity

• Members of a HUF

• Partners of a firm

Which of the following persons is eligible to be the sponsor of an AIF?

• Individual who is convicted of a criminal offence but awaiting sentencing

• Individual of an unsound mind but undergoing treatment

• Individual who is insolvent but is yet to file for bankruptcy

• ‘Fit and proper’ person as determined by SEBI

___________ is a function of the investment manager.

• Entrepreneurship

• Auditing the books of an AIF

• Harvesting returns

• Settling business disputes of the investee company

An AIF that seeks to invest in listed securities on the stock exchange and foreign currency derivatives belongs to which category?

• Category I

• Category II

• Category III

• All of the above

A fund that provides both equity and unsecured debt financing to early stage companies would classify as which one of the following?

• Venture capital fund

• Unsecured bond fund

• NBFC fund

• Investment Fund