- Considering the classification of AIF its been divided into two categories i.e category 1 consists of angel funds, social impact funds, small and mid-size enterprises (SMEs), etc. Category 2 consists of private equity, venture capital, etc. Category 3 includes funds typically invest in public markets such as hedge funds.
- This time the biggest chunk of commitments came under Category 2 AIFs, harvesting Rs 1.62 trillion worth of commitments.
- This year it has been observed that the demand for AIFs was strong both for equity and debt.
- Due to covid, over the last two years, venture capital became a major attraction for high net-worth individuals and family offices to invest in.
- SEBI also played important role in providing space and ensuring less restriction on Investing in AIFs.
- Static Part
- What do you mean by Alternative Investment Funds?
- AIFs means any privately pooled investment fund whether from Indian or foreign sources in the form of a trust or a company or a body corporate.
- They are divided into three categories as discussed above.
Question:
Q.1 Which of the following doesn’t come under category 2 of the Alternative Investment Funds?a. Private Equity
b. Venture Capital
c. Hedge Funds
d. Debt Funds
