What is an Alternative Investment Fund (AIF)?
Alternative Investment Funds (AIFs) are privately pooled investment vehicles that collect funds from sophisticated investors and invest them in accordance with a defined investment policy for the benefit of investors.
AIFs typically invest in assets other than traditional equity and debt instruments and are regulated by SEBI in India.
Why Invest in Alternative Investment Funds?
- Diversification: Exposure to non-traditional asset classes.
- Higher Return Potential: Suitable for investors seeking superior returns.
- Professional Management: Managed by experienced fund managers.
- Customized Strategies: Designed for specific investment objectives.
- Portfolio Stability: Low correlation with traditional markets.
Categories of Alternative Investment Funds
| Category | Description |
|---|---|
| Category I AIF | Invests in start-ups, SMEs, social ventures, infrastructure and other sectors considered economically desirable. |
| Category II AIF | Includes private equity funds, debt funds, and funds for which no specific incentives are provided by the government. |
| Category III AIF | Employs complex or diverse trading strategies and may use leverage to generate returns. |
Who Should Invest in AIFs?
- High Net-worth Individuals (HNIs)
- Investors with a high risk appetite
- Those looking for portfolio diversification
- Investors with a long-term investment horizon
Minimum Investment Requirement
As per SEBI regulations, the minimum investment amount in an Alternative Investment Fund is ₹1 Crore for each investor.
Why Choose Arham Finance for AIF?
- Access to curated AIF opportunities
- Objective and transparent advice
- End-to-end support from onboarding to exit
- Portfolio alignment with your financial goals