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?

• I. Bonds: Bonds are standard debt instruments, not a category of Alternative Investment Fund (AIF). Verdict: Incorrect.
• II. Hedge Funds: Under SEBI AIF Regulations, hedge funds are recognized under Category III AIFs. Verdict: Correct.
• III. Stocks: Stocks/shares are conventional securities, not treated as an AIF category. Verdict: Incorrect.
• IV. Venture Capital: Venture Capital Funds are covered under Category I AIFs. Verdict: Correct.

Hence, only two of the above are treated as AIFs.