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 AIF categories is classified as Category III?
Hedge funds using diverse or complex trading strategies, including leverage, are Category III AIFs. Venture capital, social venture and infrastructure funds are Category I, because they invest in sectors or startups the government regards as socially or economically desirable.
- AVenture capital funds
- BHedge funds that employ diverse or complex trading strategies, including leverageCorrect
- CSocial venture funds
- DInfrastructure funds
Explanation
Category III AIFs employ diverse or complex trading strategies and may use leverage, including through investment in listed or unlisted derivatives. Venture capital, social venture and infrastructure funds fall under Category I.
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