1. 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?

Alternative Investment Funds (AIFs)
An AIF is a pooled investment vehicle (a “fund”) that collects money from investors and invests it using strategies other than the traditional mutual-fund-like route of buying listed stocks and bonds in a plain way.

Common examples of AIFs (globally and in India’s regulatory usage) include:

• Hedge funds (complex/active strategies; may use leverage, derivatives, long–short, etc.)

• Venture capital funds (invest in early-stage/startups)

• Also: private equity funds, real estate funds, infrastructure funds, etc.

Traditional investments (generally not called AIFs) include:

• Stocks (equity shares, especially listed)

• Bonds (debt instruments)

1. Bonds → Traditional debt instrument, not a fund by itself. ❌ Not an AIF

2. Hedge Funds → Classic example of alternative funds. ✅ AIF

3. Stocks → Traditional asset class (equities), not a fund structure. ❌ Not an AIF

4. Venture Capital → Typically done through venture capital funds, which are AIFs. ✅ AIF