Alternative Investment Funds (AIF) and hedge funds
Hedge Fund Strategies
Learning Outcome
5
Evaluate risk, returns, and investor suitability.
4
Understand leverage, short-selling, and derivatives.
3
Identify common hedge fund strategies.
2
Differentiate hedge funds from mutual funds and ETFs.
1
Define Hedge Funds and their key features.
What is a Hedge Fund?
A Hedge Fund is a privately pooled fund that uses advanced strategies, leverage, and derivatives to generate returns.
Under SEBI's AIF Regulations 2012, Hedge Funds are classified as Category III AIFs.
They are characterised by:
Key Characteristics of Hedge Funds
Common strategies used in Hedge Funds
Summary
5
AIFs require high investment and are SEBI-regulated.
4
Category III uses advanced strategies and leverage.
3
Category II includes private equity and debt funds.
2
Category I supports startups, SMEs, and infrastructure.
1
AIFs pool money for alternative investments.
Quiz
What is an Alternative Investment Fund (AIF)?
A. A government savings scheme
B. A privately pooled investment vehicle
C. A fixed deposit product
D. A public insurance scheme
Quiz-Answer
What is an Alternative Investment Fund (AIF)?
A. A government savings scheme
B. A privately pooled investment vehicle
C. A fixed deposit product
D. A public insurance scheme
