Alternative Investment Fund (AIF) is a type of investment fund in India. Investors can use AIF for investing as well as getting benefits. It is a fund of funds that invests in asset classes other than bonds, stocks and cash. It pools funds from investors and invests them under different categories of investments as specified by the Securities and Exchange Board of India (SEBI) for the benefit of investors.
Minimum Investment Amount:
Investors need to invest at least Rs 1 crore in AIF.
Categories of AIF: There are 3 categories of AIF.
Category I AIF
o Venture Capital Fund
o SME Funds
o Social Venture Funds
o Infrastructure Funds
Category II AIF
o Real Estate Funds
o Private Equity Funds
o Funds for Distressed Assets
Category III AIF
o Hedge Funds
o Private Investments in Public Equity
