Alternative Investment Funds AIF differ from regular conventional investments (asset classes) like stocks, debt securities etc. Alternative Investment Fund is a privately pooled investment vehicle that collects money from sophisticated private investors.

AIFs include private equity, venture capital, hedge fund, and angel fund etc. Also, AIFs don't come under the purview of Securities and Exchange Board of India SEBI mutual fund regulations. Investors who wish to diversify can choose Alternative Investment Funds to invest. All Indians, including NRIs, PIOs, and OCIs, are eligible to invest in AIFs. However, they will have to meet the eligibility criteria.

Types Of AIF:

Category I AIF:

• Invests in start-ups, small and medium enterprises (SMEs), and social ventures, promoting early-stage businesses.

Category II AIF:

• Includes private equity funds, debt funds, and other funds that do not fall under Category I or III.

Category III AIF:

• Focuses on strategies that may include complex trading strategies such as hedge funds, aiming for short-term gains.

Features of AIF:

Customized Portfolio Management:

• Investment strategies are tailored to your specific financial goals, risk tolerance, and preferences.

Expert Management:

• Managed by experienced fund managers with a deep understanding of market trends and investment strategies.

Diverse Investment Options:

• Access to a wide range of asset classes including equities, debt, private equity, real estate, and hedge funds.

Active Portfolio Monitoring:

• Continuous tracking and rebalancing of your portfolio to ensure alignment with market conditions and your goals.

Risk Management:

• Focused strategies to manage and mitigate risks, ensuring a balance between potential returns and risk exposure.