Question

What characterizes Category III - AIF funds?

a.

Investing in socially or economically desirable sectors

b.

Investing in start-up projects and early-stage ventures

c.

Employing diverse and complex trading strategies and may employ leverage, including through investment in listed and unlisted derivatives

d.

Undertaking leverage for day-to-day operational requirements

Answer: (c).Employing diverse and complex trading strategies and may employ leverage, including through investment in listed and unlisted derivatives Explanation:Category III - AIF funds are employed in diverse and complex trading strategies and may employ leverage, including through investment in listed and unlisted derivatives, for example, Hedge Funds.

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Q. What characterizes Category III - AIF funds?

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