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Alternative Investment Funds in FY22 are Doubled

Published on May 31, 2022
Current Context: As per recent data from SEBI Alternative investment funds (AIF) received a commitment of Rs 1.9 trillion from investors, which is more than double compared to Rs 81,228 crores.
Alternative Investment Funds in FY22 are Doubled
  • 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
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