alphamc
1 post
Jun 16, 2026
12:35 AM
|
Alternative Investment Funds (AIF) are private investment field which raise funds from investor with courage to take high risk like HNIs, SMEs - and invest those funds in high return opportunities such as Stokes,
Hedge funds etc.
SEBI divided AIF Fund in three main categories:
Category I - These funds invest in government sector, economical significant sectors, and social development sector. AIF Category I funds sometimes get certain regulatory concessions, this includes
Venture capital funds, SME fund, infrastructure funds, social sectors.
Category II - It is the vastest and most common category use in aif investment , it contain any fund that doesn’t cover by Cat I or Cat III and they don’t use leverage excluding day to day operational needs, this includes Private equity funds, debt funds, real estate funds.
Category III - This category carries the highest risk, and funds use aggressive trading strategies and taxed differently from other two categories. This cat includes hedge funds and PIPE funds (Private investment in public equity).
AIF in India are for investor who can handle liquidity and take high risk. As per SEBI every investor must have invest minimum one crore rupees, that amount negotiable upto 25 lakhs for those who is employee or director of the fund itself.
|
