WHAT IS ALTERNATIVE INVESTMENT FUND (AIF) ?
The AIF full form is Alternate Investment Fund. AIF means any Indian investment vehicle that collects funds from sophisticated investors, whether Indian or foreign, for investing in accordance with a defined investment policy.
Alternative investment funds are regulated by the Securities and Exchange Board of India (SEBI). However, AIF Funds are not subject to SEBI’s (Mutual Funds) Regulations, 1996, SEBI’s (Collective Investment Schemes) Regulations, 1999, or any other fund management regulations.
AIF investment strategies are tailored to suit the needs of high-net-worth individuals, family offices, and institutional investors. SEBI AIFs offer a more comprehensive range of investment opportunities and alternative asset management methods. AIF Funds invest in assets that are not typically available through traditional investments, and they can be structured as trusts, limited liability partnerships (LLPs), or companies.
WHY CHOOSE US..?
The investment alternative offers about 11-16% return to retail investors compared to the traditional investment methods. Therefore, Alternate Investment Funds are considered a valuable addition to a well-diversified investment portfolio, as they provide exposure to alternative assets that can generate higher returns and offer low correlation to traditional investments. Now that we know what are alternate investment funds, let us look at a few factors to consider before investing in them.
Benefits Of (AIF)
- Diversification of Portfolio
- Potential for High Returns
- Access to Specialized Investment Opportunities
- Hedge Against Inflation
The Category I AIF
- Venture Capital Funds
- SME Funds
- Social Venture Funds
- Infrastructure Funds