Higher Returns
AIFs offer potential for higher returns, with large pooled funds allowing expert managers to craft strategies aimed at maximizing growth.
Lesser Liquidity
Alternative investments managers tend to hold more concentrated portfolios, also AIFs generally have lesser liquidity of assets held.
Diversification
AIFs broaden your portfolio diversification by investing in non-traditional assets.
Indian Residents, NRIs, and Foreign Nationals
You can invest in AIFs whether you're in India or abroad, unlocking global investment opportunities.
Joint Investments Allowed
Invest with your spouse, parents, or children, making it easier to achieve shared financial goals.
Exclusive for HNIs
The minimum investment amount is Rs 1 crore for investors.
Minimum Lock-In Period
AIFs may have a lock-in period depending on the asset class AIF is investing in.
Category 1 AIF | Invest in |
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Venture Capital Funds | Early-stage ventures or start-ups with high growth potential. |
SME Funds | Small and medium enterprises with a good track record. |
Social Venture Funds | Invest in projects with a positive societal or environmental impact, like clean energy. |
Infrastructure Funds | Infrastructure projects such as railways and airports. |
Category 2 AIF | Invest in |
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Private Equity Funds | Provide equity to unlisted companies for capital raising. |
Debt Funds | Fixed-income securities like bonds from unlisted companies |
Fund of Funds | Allocate capital across various AIFs rather than direct investments |
Category 3 AIF | Invest in |
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Private Investment in Public Equity (PIPE) | Listed companies at discounted prices when their share values drop. |
Hedge Funds | Use diverse strategies like - short selling, derivatives, margin trading, and futures to maximize returns. |