NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Overview of Alternative Investment Funds (AIFs)
Under the SEBI (Alternative Investment Funds) Regulations, 2012, which of the following is a Category I AIF?
A venture capital fund is a Category I AIF. Category I covers funds investing in start-ups, early-stage businesses, SMEs, social ventures and infrastructure, which are seen as socially or economically desirable, whereas hedge funds using complex strategies and leverage fall under Category III.
- AVenture capital fundCorrect
- BHedge fund
- CPrivate equity fund investing in listed securities with leverage
- DFund of funds making leveraged investments
Explanation
Category I AIFs invest in start-ups, early-stage ventures, SMEs, social ventures and infrastructure, and include venture capital funds, SME funds, social venture funds and infrastructure funds. Hedge funds and funds that use leverage as part of trading strategy are Category III or Category II as applicable, not Category I.
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