What Are Alternative Investment Funds In India Upsc?

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What is alternative investment fund in India?

Alternative investment funds refer to funds that include hedge funds, venture capital, private equity, angel funds, real estate, commodities, collectibles, structured products, etc. Alternative investment funds are an alternative to traditional investment options (stocks, bonds, and cash).

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What are alternative investments funds?

Alternative mutual funds (sometimes called alt funds or liquid alts) are publicly offered, SEC-registered mutual funds that hold non-traditional investments or use complex investment and trading strategies. Investors considering alt funds should be aware of their unique characteristics and risks.

What are the 3 categories of AIF?

Namely, Category I AIF, Category I AIF and Category III AIF. Each of the categories has different investments as per the broad definition of the category. Some of them are private equity, venture capital, hedge fund, and angel fund etc. The minimum investments and fees for AIFs are higher than conventional investments.

What is a Category II Alternate investment fund Upsc?

Category 2 Alternative Investment Fund The funds under this category are invested in equities and debt securities. Funds that aren’t categorized under category 1 or 3 also fall under this category. The government does not give any tax exemption or concession for investments in this category.

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How many types of AIF are there?

Currently, the AIF Regulations provide for three categories of funds: – Category I Alternative Investment Fund; – Category II Alternative Investment Fund; and – Category III Alternative Investment Fund.

What are the 4 main categories of alternative investments?

Alternative investments are supplemental strategies to traditional long-only positions in stocks, bonds, and cash. Alternative investments include investments in five main categories: hedge funds, private capital, natural resources, real estate, and infrastructure.

What are 5 investment alternatives?

Peer-to-Peer Lending. Real Estate. Gold. Owning Your Own Business. Equity Crowdfunding.

What are the three main types of investment alternatives?

The most common types of alternative investments include real estate, collectibles, commodities, private equity, and derivatives.

Who regulates AIF in India?

An AIF may launch schemes subject to filing of placement memorandum with SEBI. Further, it may be noted that prior to launch of scheme, an AIF is required to pay Rs. 1 lakh as scheme fees to SEBI while filing the placement memorandum. Such fee shall be paid atleast 30 days prior to launch of scheme.

What is the structure of AIF?

Under the AIF Regulations, an AIF can be structured in the form of a limited liability partnership, company, body corporate or trust.