An Alternative Investment Fund (AIF) is a private investment pool in India, collecting funds from sophisticated investors globally or domestically. Unlike Mutual Funds, AIFs operate under a defined investment policy, focusing on unconventional investments like venture capital, private equity, and hedge funds.
All Indians, including NRIs, PIOs, and OCIs, can invest in AIFs, provided they meet qualifying requirements such as a minimum capital of Rs20 crore for each program. Investors must make a minimum investment of Rs1 crore or Rs25 lakh in the case of AIF employees, directors, and fund managers.
Risk-taking investors desiring diversification can invest in SEBI-registered AIFs. Joining our platform will guide you through the entire investment process, ensuring a seamless experience.
AIFs are privately pooled investment vehicles where funds are not used to give loans, distinguishing them from traditional lending structures.
Alternative investments cover financial assets outside conventional categories like stocks, bonds, and cash.
While mutual funds involve traditional investments, AIFs venture into a broader spectrum, including venture capital, private equity, and unconventional assets.
AIFs carry higher volatility and risk compared to traditional assets like equities and bonds. Their complexity and limited liquidity contribute to their unique risk profile.
The liquidity of AIFs varies, with many assets not publicly priced or traded, making them less liquid than standard stocks and bonds.
Investments are categorized into growth and defensive investments. Growth investments involve long-term assets like shares and property, while defensive investments include consistent income generators like cash and bonds.
Minimum investments in AIFs depend on the type. Angel funds require a minimum of INR 25 lakhs per investor, while other AIFs demand a minimum of INR 1 crore.
AIF stands for Alternative Investment Fund, a privately pooled investment vehicle with a defined investment policy catering to sophisticated investors.
AIF registration fees vary by category: Rs. 5,00,000 for Category I, Rs. 10,00,000 for Category II, and Rs. 15,00,000 for Category III.
High-net-worth individuals (HNIs) opt for AIFs to diversify portfolios, offering high return potential with higher risks. AIFs enable access to non-traditional securities.
Competent investors, whether Indian, foreign, or non-resident Indian, can invest in AIFs, provided they have the required capital and willingness to invest in unlisted and illiquid stocks.
Except for angel funds, all AIFs in India require a minimum investment of Rs. 1 crore, with the angel fund minimum set at Rs. 25 lakhs.
The “corpus” refers to the total committed funds by investors in written contracts or similar instruments within an AIF.
AIFs (excluding angel funds) can have up to 1,000 investors, with a maximum of 49 angel investors. Public calls for investors are prohibited, and funds are raised through private memorandum issuance and other methods.