Skip to content

NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Overview of Alternative Investment Funds (AIFs)

Which category of AIF is classified as Category II under the SEBI AIF Regulations?

Category II AIFs include private equity funds and debt funds that do not borrow, except to meet day-to-day operational needs as permitted by regulations. Venture capital and social venture funds belong to Category I, whereas hedge funds using complex strategies and leverage belong to Category III.

  1. AVenture capital funds investing in start-ups
  2. BPrivate equity funds and debt funds that do not use leverage other than to meet day-to-day operational requirementsCorrect
  3. CHedge funds that employ complex or diversified trading strategies and leverage
  4. DSocial venture funds receiving government incentives

Explanation

Category II covers AIFs such as private equity and debt funds that do not undertake leverage except for day-to-day operations as permitted. Venture capital and social venture funds fall in Category I, while hedge funds using complex strategies and leverage fall in Category III.

Did you get it right without looking?

One question tells you little. A timed set on Overview of Alternative Investment Funds (AIFs) shows your real accuracy, how long you take and where you lose marks.

Practise Overview of Alternative Investment Funds (AIFs)Free diagnostic mock

More Overview of Alternative Investment Funds (AIFs) questions