Relative to traditional investments, alternative investments are least likely to be characterized by:
- high levels of transparency.
- limited historical return data.
- significant restrictions on redemptions.
Correct ans is A
Why not C?
What’s the meaning of option C?
Option c talks about one about the feature of Alt investment ie compare to traditional investment , alt investment has some significant restrictions on redemption , matlab ap jab chaahe apna paisa nehi nikal sakte ho, ( you can think of hedge fund, in which there are lock up period and notice period , so there if you wants your money back , so in that case suppose lock up period is 3 years ,so in 3 years you cannot place a redemption request, ) so that way.
I hope it’s help
Apart of REITs, Alternate investments are highly illiquid.
for example, in hedge funds there is a lockout period in which investors have no right to redeem before a certain no. of period( say 3 years)
notice period- after lockout period investor can put a redemption request it will further take 60-90 days to get funds back
Restrictions on redemptions refer to Notice period and Lock in period which is true in case of many hedge funds.