Which one of the following statements about the National Investment and Infrastructure Fund (NIIF) is not correct?

Introduction / Context:
The National Investment and Infrastructure Fund is an important institution in the area of infrastructure financing in India. It is often confused with the earlier National Investment Fund, which had a different purpose related to disinvestment proceeds. Examinations commonly include questions that test whether candidates can distinguish between these entities and recall basic facts about the objectives and structure of the NIIF. This question asks which statement about NIIF is not correct.

Given Data / Assumptions:

• The question lists four statements regarding NIIF.
• They refer to the budget announcement year, the purpose of financing infrastructure, the relationship between NIIF and NIF, and the possibility of multiple alternative investment funds.
• We must select the single statement that does not correctly describe NIIF.
• We rely on standard government statements and summaries found in basic economy texts.

Concept / Approach:
The NIIF was announced in the Union Budget 2015 to 2016 as a quasi sovereign wealth fund aimed at catalysing long term capital for infrastructure projects. It is designed as a platform with multiple funds under its umbrella, often structured as alternative investment funds to attract institutional investors. The National Investment Fund, by contrast, was a separate mechanism that dealt with the proceeds from disinvestment of public sector enterprises. Thus, it is incorrect to say that NIIF and NIF are merely different names for the same body. The key to this question is to identify this confusion and recognise the separate identities of the two funds.

Step-by-Step Solution:
Step 1: Recall that NIIF was announced in the Union Budget speech for the financial year 2015 to 2016 as a new vehicle for infrastructure investment. This matches the first statement. Step 2: Confirm that the primary purpose of NIIF is to provide long term capital for infrastructure projects such as roads, ports, and energy, which makes the second statement correct. Step 3: Consider the statement that NIIF and NIF are simply different names for the same organisation. This is misleading because NIF was an earlier fund created for disinvestment proceeds, whereas NIIF is a dedicated infrastructure investment platform. Step 4: Recall that NIIF is structured to host multiple funds, including a master fund, fund of funds, and strategic or sectoral funds, all of which can be alternative investment funds. This aligns with the fourth statement. Step 5: Conclude that the only incorrect statement is the one equating NIIF and NIF. Step 6: Select that statement as the answer.

Verification / Alternative check:
To verify, you can think of typical exam questions that separately define NIIF and NIF. NIIF is usually described as a sovereign backed fund for infrastructure, while NIF is described as a pool where proceeds from disinvestment were placed for social and capital expenditure. Government documents and economic surveys also mention them as distinct entities. Also, NIIFs website and official communications refer to multiple funds under its platform, reinforcing the idea that it can host more than one alternative investment fund. These cross checks confirm that only the third statement is incorrect.

Why Other Options Are Wrong:
The budget year reference is accurate and widely cited. The statement about NIIFs purpose is correct because its mandate focuses on infrastructure financing and crowding in private capital. The statement about multiple alternative investment funds reflects the actual platform structure of NIIF. Since these three statements align with official descriptions, they cannot be considered incorrect for the purpose of this question.

Common Pitfalls:
A frequent mistake is to read quickly and assume that similar sounding names like NIIF and NIF refer to the same fund, especially under exam pressure. Another pitfall is ignoring context; seeing the word investment in both names may lead to confusion. To avoid such errors, candidates should make a short chart distinguishing major financial institutions and funds, noting their purposes, years of creation, and key features, and should revise it regularly before exams.

Final Answer:
The incorrect statement is that the NIIF and the National Investment Fund are simply different names for the same organisation, because they are in fact separate entities with different objectives and structures.