Alternative Investment Funds (AIFs)
Alternative investment opportunities for eligible investors seeking private market and differentiated strategies.
Overview
An Alternative Investment Fund (AIF) is a privately pooled investment vehicle that collects capital from eligible investors and invests it according to a defined investment strategy. In India, AIFs are regulated by the Securities and Exchange Board of India (SEBI) under the SEBI Alternative Investment Funds Regulations.
What is an Alternative Investment Fund (AIF)?
AIFs typically invest in opportunities beyond traditional investments such as mutual funds and listed equities. Depending on the fund’s strategy, investments may include private equity, venture capital, private credit, infrastructure, real estate, hedge fund strategies, and other alternative assets.
Category I AIF
These funds invest in sectors considered socially or economically desirable and often support long-term economic development.
- Venture Capital Funds
- Angel Funds
- Infrastructure Funds
- Social Venture Funds
- SME Funds
- Suitable for investors seeking exposure to early-stage businesses, innovation, and long-term growth opportunities
Category II AIF
These funds do not receive specific government incentives and generally invest in established private market opportunities.
- Private Equity Funds
- Debt Funds
- Real Estate Funds
- Fund of Funds
- Suitable for investors seeking long-term capital appreciation through private market investments
Category III AIF
These funds may employ diverse or complex trading strategies and may invest in listed and unlisted securities.
- Long-Short Funds
- Hedge Fund Strategies
- Absolute Return Strategies
- Multi-Strategy Funds
- Suitable for experienced investors who understand alternative investment risks
How Risense Supports You
- Explain AIF categories, lock-ins, liquidity, fees, and strategy risks
- Assess investor eligibility and suitability before any discussion
- Review fund documents, sponsor background, and investment mandate
- Position AIFs as part of a broader diversified wealth plan where suitable
Investments are subject to market and product-specific risks. Please read all scheme, offer, and risk documents carefully before investing.