With reference to investments, consider the following : I. Bonds II. Hedge Funds III. Stocks IV. Venture Capital How many of the above are treated as Alternative Investment Funds?

Hedge funds and venture capital are classified as Alternative Investment Funds (AIFs) under SEBI regulations because they pool private capital for non-traditional investment strategies. Bonds and stocks are excluded because they represent traditional asset classes traded on public exchanges, whereas AIFs specifically target sophisticated investors through private placement in assets like private equity or distressed debt. The core concept tested is the regulatory classification of investment vehicles, specifically the distinction between conventional securities and the three categories of AIFs defined by SEBI.